The U.S. Dollar put in a notably bearish move after yesterday’s FOMC rate decision, extending the brutal year for the Greenback that’s seen as much as -12.3% of lost value. But – with 2018 just around the corner, what might markets be looking for as we head into the New Year?

– In this webinar, we used price action to look at major FX markets after the Central Bank entourage over the last couple of days. Yesterday brought the Federal Reserve with the bank’s third rate hike this year. Today brought the Swiss National Bank, the European Central Bank and the Bank of England to the table. This was my final webinar of calendar year 2017, so much of what we looked at was longer-term in nature with focus out towards the beginning of next year.

– The first market we looked at was the U.S. Dollar. USD had moved up to a key area of resistance earlier in the week, and prices started to burst-lower after yesterday’s CPI report. As the Federal Reserve rate hike came in and as Chair Yellen started the accompanying press conferences, prices continued their bearish drive. This keeps near-term price action in the U.S. Dollar in a bearish state, and that prospect of a bullish reversal looks significantly less-likely given this response at resistance. To get bullish – traders would likely want a break of 95.15 before looking in that direction, as that would allow for a break of the bearish channel that’s defined the Dollar’s tone throughout this year.

– USD had moved up to a key area of resistance earlier in the week. On Tuesday, we looked at the prospect of a near-term higher-low around a key support zone that runs from 1.1685-1.1736. This has been a key zone in EUR/USD for much of the past four months, and after yesterday’s pop off of support, prices began to pull lower around this morning’s ECB rate decision. We drilled down to an hourly chart to look at an instance of prior resistance showing as near-term support, and given proximity to recent swing-lows, this can open the door for bullish plays.

Print Friendly, PDF & Email