US Dollar Grasps on to Gains as Pressure Continues to Build in a S&P

Talking Points:

– We’re quick coming a finish of Q1 with this holiday-shortened week, with Friday being a marketplace holiday in many economies in tact of Good Friday. As we nearby a finish of a quarter, vigour continue to uncover opposite US equities and a US Dollar is exhibiting what appears to be a quarter-end associated pierce as buyers have continued to push-higher after a Monday sell-off in DXY.

– This opens a series of engaging scenarios opposite majors pairs, as a delay of USD strength will put EUR/USD during an engaging connection of intensity longer-term support, while USD/JPY is rallying towards a pivotal area of intensity resistance. We had discussed a series of USD-pairs on yesterday’s webinar, that is accessible from a following link: US Dollar Rallies to Resistance as Bears Come Back into a SP.

– Are we looking to urge your trade approach? Check out Traits of Successful Traders. And if you’re looking for an rudimentary authority to a Forex market, check out a New to FX Guide.

Do we wish to see how sell traders are now trade a US Dollar? Check out a IG Client Sentiment Indicator.

US Equity Slump Continues

The large object over a past 24 hours is another bearish pierce in US equities. Yesterday’s late-session sell-off topsy-turvy the entirety of Monday’s gains, and a sell-off ran all a approach until a 76.4% Fibonacci retracement of a February-March pierce came into play around 2594. This was a same territory of prices that had helped to set support on Friday, which led into a Monday rally. The large doubt during this indicate is possibly this support can reason as we pierce towards a finish of Q1.

SP 500 Four-Hour Chart: Fibonacci Support Catches a Lows

US Dollar Grasps on to Gains as Pressure Continues to Build in a Samp;P

Chart prepared by James Stanley

Facebook Sell-Off Risks Channel Break

The large object in a title that’s being attributed to this equity sell-off is a destruction that’s been display in FANG stocks. That’s Facebook, Amazon, Netflix and Google; with a sell-off being led by Facebook around remoteness concerns, and this is also attack Google’s batch as prices have pulled behind to exam a psychological $1,000 level. This week’s price action has brought a rather assertive bearish response, and during this indicate FB is risking a tighten next a trend-line that’s never been broken. This can be found by joining a Aug 2015 low to a Jan 2017 low. This trend-line runs together to a integrate of others that assistance to harmonise a channel, though with Facebook’s down-side break, if reliable by a weekly tighten next this area – a doorway is non-stop to extremely some-more selling.

Facebook (FB) Weekly Chart: Testing Support Side of Long-Term Bullish Channel

FB Facebook Weekly Chart

Chart prepared by James Stanley

Dollar Bulls Take Their Shot

For all a fad in a equity space, currencies have been comparatively soft over a past 24 hours. Yesterday, we had looked during the US Dollar contrast insurgency during a before area of support, right around a prior Mar lows. That insurgency hold by a US event and by many of Asia, during that indicate a higher-low began to uncover as prices changed behind into that zone.

US Dollar around ‘DXY’ Hourly Chart: Dollar Bulls Bring Higher-Low, Return to Resistance Zone

us dollar hourly chart

Chart prepared by James Stanley

On a somewhat longer-term basis, USD is during a pivotal area that could unequivocally cut in possibly direction. As we looked during above, that higher-low around 89.25 could be a initial step of a bullish move. If we do get a higher-high above Friday’s high of 89.73, a doorway stays open for continued topside in this shorter-term pierce as we trade towards a finish of Q1. But, during this point, a four-hour draft is still display that lower-high intensity and this will be a box until 89.73 gets taken-out.

US Dollar around ‘DXY’ Four-Hour Chart: Bearish Potential Remains With Lower-Lows, Highs

us dollar 4 hour chart

Chart prepared by James Stanley

EUR/USD Hangs Near 1.2400

In yesterday’s article we looked during a integrate of opposite areas of seductiveness around EUR/USD, a initial of that was a territory of insurgency taken from a integrate of pitch highs progressing in March, travelling from 1.2413 adult to 1.2446. This area helped to locate a highs of Monday’s rally, and given afterwards buyers have been incompetent to make most ground.

But a pullback in a pair, during this point, has been rather amiable as we’ve seen support come-in around 1.2375. A bit reduce is another area of seductiveness in a territory that spans from 1.2335-1.2350. This area has offering mixed instances of both support and insurgency over a past integrate of months, and this territory is now feeder given that we now have a forward trend-line raised in this region. If we can see that short-term thesis of EUR/USD debility pierce down to find support in this longer-term zone, a doorway is open for bullish delay in a pair.

EUR/USD Four-Hour Chart: Bullish Breakout Stalls Shy of 1.2500, Higher-Low Support Potential

eurusd 4 hour chart

Chart prepared by James Stanley

USD/JPY Approaches Resistance Zone

We discussed this span at length in yesterday’s webinar, looking deeper into a bearish trend that’s started to uncover in a span around 2018. This led into a bearish dermatitis next a large territory of long-term support final week, with a exam next a 105.00 psychological level.

USD/JPY Daily Chart: Last Week’s Break of Long-Term Support Met with Pullback

usdjpy weekly draft

Chart prepared by James Stanley

In yesterday’s webinar, we warned of chasing a span while during these lows, instead focusing on a territory of intensity insurgency that runs from 106.35 adult to 106.61, as this could concede for short-side entrance into a setup in a some-more risk-efficient manner. The bottom of that territory has started to come into play this morning.

USD/JPY Four-Hour Chart, Leap to Resistance: Will Sellers Hold a Lower-High?

usdjpy 4 hour chart

Chart prepared by James Stanley

To review more:

Are we looking for longer-term research on a U.S. Dollar? Our DailyFX Forecasts for Q1 have a territory for any vital currency, and we also offer a engorgement of resources on USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay adult with near-term positioning around a IG Client Sentiment Indicator.

Forex Trading Resources

DailyFX offers a engorgement of tools, indicators and resources to assistance traders. For those looking for trade ideas, a IG Client Sentiment shows a positioning of sell traders with tangible live trades and positions. Our trading guides move a DailyFX Quarterly Forecasts and a Top Trading Opportunities; and a real-time news feed has intra-day interactions from a DailyFX team. And if you’re looking for real-time analysis, a DailyFX Webinars offer countless sessions any week in that we can see how and because we’re looking during what we’re looking at.

If you’re looking for educational information, a New to FX guide is there to assistance new(er) traders while a Traits of Successful Traders research is built to assistance whet a ability set by focusing on risk and trade management.

— Written by James Stanley, Strategist for DailyFX.com

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