The U.S. Dollar remains bearish across the board, currently having some pullbacks on intraday charts which can send the buck even lower ahead of tomorrows Non Farm Payroll report when some recent directions could change.
For the relatively small number of our readers that are still at their desks, we wanted to start by wishing you a great Good Friday and Easter holiday ahead, though today’s market conditions are hardly “good” for most active traders. Most major stock and bond markets are closed leading to lackluster, low volatility trading conditions in the foreign exchange markets.
The EUR/USD currency pair rocketed higher last week on the back of a more-dovish-than-anticipated FOMC meeting on Wednesday, but since then, the world’s most widely-traded pair has slowly but surely given back most of those gains. Ahead of the Fed meeting, we had noted the tight falling wedge pattern forming on the 4-hour chart, which added fuel to the fundamentally-driven bullish move.
The dollar climbed for a fifth consecutive day against a basket of major currencies on Thursday, putting it on track for its best run of gains in almost a year, as investors moved to price in the possibility of two U.S. rate hikes this year.
The dollar remains the currency market’s standout performer for the second straight day, gaining value against each of its major rivals after this morning’s as-expected New Home Sales report. NZD/USD saw a bullish “golden cross” of the 50-day moving average above the 200-day moving average, though it’s worth noting that the 200-day MA continues to trend lower, potentially weakening the bullish implications of the signal.