Today, on March 25th, the US Dollar is trading maid lower volatility relative to other major currencies. The US Dollar gained against the Swiss Franc, the Euro and the British Pound (0,19%, 0,21% and 0,04% respectively), simultaneously losing some value gainst the Japanese Yen (-0,02%).
The USD index is currently trading higher against the other 6 major currencies included in the basked. At this point, the index is up by 0,14% to 8019.
Today's American trading session is going to bring us some major economic stats, which are definitely going to drive the market in the corresponding direction.
In particular, the USA is about to release the reports for the energy and housing sectors. At the same time, Mario Draghi, who is currently the head of the ECB, is going to make a speech.
During these events, we may see increased volatility in the currency market, especially in the markets related to the US Dollar and the common European currency.
On top of that, a representative of the Federal Reserve System is going to make a speech as well. The speech will be dedicated to the health conditions of the US economy.
Moreover, the situation around Ukraine seems to be influencing global financial markets, Forex is no exception. Yesterday, G7 held an off-schedule summit. During this summit, the G7 leader officially canceled the forthcoming G8 summit in Sochi, Russia. This is obviously a response to Russia's annexation of the Crimea, that used to be a part of Ukraine. They also called the Crimean referendum illegitimate and condemned Russia’s activity in the Crimea.
Masterforex-V Academy on US Dollar Prospects
According to the recent analysis conducted by the trading experts of Masterforex-V Academy, the H4 chart indicates a retracement against a basket of other 6 major currency pairs. This retracement takes place within the scope of a bigger-scale rally. This means that the long-term bias is still bullish despite the current weakness. After all, the Fed is tapering its QE program, which drives the US Dollar higher.
The blue lines indicate the MF zone represented by the price range between
80,20 and 80,33. We can also clearly see that the price broke about the bottom of the MF zone earlier today. If the price manages to consolidate below the bottom of the range, we are likely to see a further decline down to 79,90 or maybe even 79,37.
Alternatively, if the price goes back inside the MF zone and breaks above its top, we are likely to see an upswing to 80,50 or even higher, specially if it is supported by stronger economic figures from the USA.
