The Dollar Gravitates Around the 83 Level
Think of it as the Earth and Sun…the U.S. Dollar continues to gravitate and circle around the 83.00 level. The move during the afternoon New York session was suspect as it occurred only after the European/U.K. session wrapped up and thus could only occur during the forex doldrums.
When Europe and the U.K. opened this morning prices quickly found the “00†and has been trading around it since. There have been a few short lived moves higher and lower around the “00†but traders during the New York session seem to want to push the U.S. Dollar just below the 83.00 level. With 83.21 holding as resistance and 82.82 holding as support, the minor psychological levels have the larger range established. The S1 pivot level at 82.89 is also acting as support.
The follow-through has been very poor specifically because the U.S. Dollar does not wander too far past 83.00 for very long. Expect more of this until Friday’s NFP.
The EUR/USD is adding to the U.S. Dollar’s range-bound action as it has its own significant level to contend with. The last time prices were able to pierce 1.3400 it was sent lower very quickly. With the consolidation that is occurring below the “00†now, there is likely to forces at work: Too few traders who are willing to run the U.S. Dollar lower while running the Euro higher before NFP and the selling pressure between 1.3380 and 1.3400.
Raghee Horner is a trader with more than 15 years’ experience in the markets. Ms. Horner has taught her brand of technical analysis and charting strategies to students all over the world. Emphasizing charting and price action and continues to teach the tools and strategies that encourage self-directed traders to pursue the study of chart analysis and market psychology. She is a much sought after public speaker who has conducted seminars in the US, Canada, the Caribbean, and Asia. Raghee’s charts are created using eSignal and EZ2 Trade Software. https://www.ez2tradesoftware.com