Week Ahead Analysis: Critical Week for US Dollar
Littlefish FX | Jul 07, 2013 05:36PM ET
THIS WEEK
The USD will be in the spotlight after the recent strong NFP numbers.
We have a relatively light data calendar this week; the key highlights are the Chinese data on Tuesday and the FOMC statement on Wednesday.
We will continue to watch for comments out of the Eurozone, with focus on the political situation in Portugal and Greek aid payments.
The order books continue to point to further USD strength, with weekly lows in most Dollar crosses not far off. This could be a critical week for the pair. If we break the lows in some of the key crosses, we could open the door for further moves lower and increased USD strength. If the lows hold with support, we could see a bounce and trading within these new wider ranges. The FOMC statement on Wednesday is likely to play a big part in this.
EUR/USD
We are going to remain short with the euro, having entered at around the 1.3200 mark.
The pair looked closing to offering a reversal pattern, but comments from Draghi and the strong NFP number pushed Retail traders to aggressively buying of the dips in the pair. This in turn ensured we remained long with the pair in the near term.
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