The US Dollar has taken a beating over the last few days. This is because the market was let down by the US economic data on on Friday. Let's find out what this means for our trading signals.
The Euro, British Pound, and commodity Dollars have gained massively during this time, but they have stalled since yesterday.
In fact, EUR/USD has been sliding about 60 pips lower from the top but that´s mostly due to the ECB (European Central Bank) meeting tomorrow. No one expects them to change anything now, but nevertheless, the market is getting nervous.
GBP has also lost considerable ground after the earnings report yesterday. On the other hand, the safe haven currencies are enjoying some good times.
USD/JPY has dived about 250 pips since Friday and that has dragged EUR/CHF lower. Now this forex pair is again below 1.10 and our pending forex signal just went live, but we´ll post another forex update about that signal.
The Yen has been the prime beneficiary during this time, but that´s not a surprise. It has gained around 300 pips since about a week ago when USD/JPY was near the top 114.40.
We´ve had a few successful forex signals in this pair during this time and we opened another one last night after the retrace higher took the price to the 20 SMA on the hourly forex chart.
While we´re still trading around last night´s levels, the 50 SMA has caught up with the price now, which is supposed to strengthen the resistance and hopefully give this forex pair another push downward.