The greenback continues to rally versus the major currencies, moving past previous support levels and triggering new entry signals for technical traders. Today’s news events may also turn out to be dollar positive.
US Trade Balance – 13:30 GMT
Expectations: -45.0B. Previous: -46.3B
A weaker dollar may have helped boost US exports thereby shrinking the trade balance numbers. Anything greater than -45B could be dollar positive.
US Weekly Unemployment Claims – 13:30 GMT
Expectations: 451K. Previous: 457K.
Last week’s surprisingly better than expected non-farm payrolls report may have signaled a turnaround in US employment data. Strong employment numbers should boost dollar buying.
Crude Oil Inventories – 15:30 GMT
Expectations: 1.1M. Previous: 2.0M.
Crude oil prices are at a 2-year high and look to move higher. Traders could target the big round number of $100 a barrel.
The EUR/USD has the 5-day and the 20-day simple moving averages crossing, with the faster moving average moving below the slow moving average, signaling to traders to enter short. While the signal has been choppy the last month, the signal can provide traders with a long term trade with a new trend.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
