Today, on September 2nd, the US Dollar keeps on gaining value against other major currencies. In particular, the USD index has just managed to set another multi-month high against a basket of 6 majors. This happened during the first part of the European trading session. By reaching 82,93, the price hit the highest price level since July 2013.
Today, market participants are focused on today's ECB meeting. Meanwhile, the Japanese stock market shooed some volatility this morning. In particular, Nikkei managed to gain 1.78%, which pressed the Japanese Yen, thereby letting the US Dollar gain some value against the Japanese counterpart. The rally strengthened USD versus JPY by 0,48%
Meanwhile, European markets are likely to consolidate today. The thing is that geopolitical risks, including the current military conflict in Eastern Ukraine, are keeping some traders and investors risk-averse. Another deterrent for volatility is the ECB meeting scheduled for tomorrow, September 3rd. Most traders and investors are likely to wait till the meeting is over before they make another move.
Some investors anticipate further monetary stimuli from the ECB. Meanwhile, other investors keep on building up short positions in the market of EURUSD in advance of the ECB meeting.
So, today's trading will revolve around the Eurozone's PPI and the USA's manufacturing activity index.
US Dollar Index: Near-Term Prospects
According to Masterforex-V Academy, the current state of affairs in the currency market of EURUSD looks the following way:
At the beginning of the European trading session, we could see an effort to made by the bulls in the market of the USD index, which took the price higher in order to let it set another multi-month high at 82,93. Still, the price has failed to consolidate around the new high and is currently retracing back. Still, the retracement isn't backed by ascending trading volume, which means that the bears are weak and another rally may well take place in the near future.
So, the upward scenario looks more likely since the bias is still bullish. The closest targets are 82,93, 83,04 and 83,14. If the price goes further down, the next levels of support to look at is 82,67, 82,59 and 82,74.
