Ivan Zhigalov
Today, on September, 11th, the US Dollar index reflecting the strength of the US Dollar against 6 other major currencies, is consolidating close to the local high of 84,52. The local high was set on September, 9th.
This week's economic calendar for the USA is pretty scanty in terms of key economic reports. That is why, the US Dollar is consolidating against other currencies while waiting for drivers to trigger another directional move.
This trading week is nearly over so the list of the remaining major economic reports looks as follows:
The important US retail sales report is set to come out tomorrow, on September, 12th. The forecast for the August report is 0,6%. Another report is the preliminary report on consumer sentiment by Michigan University. The forecast is an increase from 83,4 up to 82,5.
Lower mortgage lending in the USA amid economic recovery in Canada coupled with higher-than-expected figures in France are some of the factors triggering the current consolidation of the US Dollar index close to the local high set 2 days ago.
Next week, traders and investors expect for more clarity from the Fed concerning its decision to start raising interest rates. It should be noted that the Fed's ultra-easy monetary policy has been favoring the US stock market amid lower US bond yields.
Yesterday, the US stock indices managed to finally gain some value after showing three bearish trading days in a row. The European stock indices also closed in the green zone. Still, the forthcoming Fed meeting and the independence referendum in Scotland scheduled for next week ar not expected to favor stock indices.
USD Index – Intraday Prospects
As usual, Masterforex-V Academy is going to help us define the near-term prospects of the USD index after conducting comprehensive analysis of the H1 chart of the US Dollar index and defining the current technical situation in the market. The active growth of the US Dollar started from 82,82 on September 4th.
After making a 3-wave bullish count, the price started consolidating yesterday within the scope of the 84,03-84,52 range. The consolidation is still underway. Ascending lows and descending highs let us built 2 sloping channel, which built a narrowing channel in the form of a triangle. As the price keeps rebounding from the borders of the sloping channels, we can see that the bulls and the bears are currently fighting for the right to dominate the market in the near future. Apparently, the direction in which the price breaks and consolidates outside of the triangle will determine the near-term tendency.
Ivan Zhigalov
