In yesterday’s article, we looked at the U.S. Dollar after falling to a fresh two-month-low as we started on a calendar with a decent breadth of data for this week. The U.S. Dollar, in particular, has some interesting items over the next few days, and on Thursday we get inflation numbers out of Europe. This should be particularly interesting given the German GDP report that came out two weeks ago, effectively reversing the bearish move in the Euro that had shown up after the October ECB rate decision. Also on Thursday is a critical OPEC meeting that will likely determine the trajectory of Oil prices as we move into next year. Below, we’re looking at price action themes as we approach this heavy outlay of drivers.

The U.S. Dollar

This week is full of U.S. related drivers. Later today brings U.S. Consumer Confidence, and tomorrow is GDP for Q3. We also have some Central Bank-speak spattered throughout the next couple of days with the highlights being Mr. Jerome Powell’s confirmation hearing before the Senate later this afternoon; and then tomorrow outgoing Fed Chair Janet Yellen will be speaking in front of the Joint Economic Committee of Congress. Thursday brings the release of the Fed’s preferred inflation gauge of PCE, and Friday brings ISM Manufacturing. Below, we’re looking at the high-impact USD items taken from the DailyFX Economic Calendar.

High Impact USD-Related Events for the remainder of this week via the DailyFX Economic Calendar

prepared by James Stanley

As we looked at yesterday, the Dollar opened the week with fresh two-month lows, extending the drop that had started three weeks ago and hastened considerably last week. And this comes on the heels of the first real ray of hope that Dollar bulls had for this year after the Greenback had climbed above a key area of resistance in latter-October.

Support began to show yesterday around the 61.8% retracement of that recent bullish move; and since then prices have trickled up to the 50% retracement of that same move, which is currently serving as an element of near-term resistance.