Forex – Dollar Bull Run To Continue?

The ECB (European Central Bank) rate decision last week gave the EUR/USD a rocket-like boost, catapulting it almost 400 Pips in a few hours. The Euro has not seen such momentum in all year. The question is will the RBNZ, SNB and BOE produce the same momentum for the other players against the USD or is the “smart money” still looking to the Fed? It’s a wait and see scenario until after these pending bank announcements.
Last Fridays US Non-Farm Employment Report for November again came in above expectations. Market consensus is that this has provided the catalyst for a Fed rate hike come later this month. It is this writer’s opinion that the Dollar Bull run has just taken a breather and regardless of the Feds decision the recent EUR/USD looks to have provided another short selling opportunity against the EUR/USD as well as most of the other majors against the Greenback.

Majors and Commodity Pairs – Long or Short?

EURUSD

Outlook Direction: Short/Mixed

Will last week’s upward gain hold? Possibly for the short term but unlikely in the longer term. The 1.1000 pschogical level would need to be breached to confirm any upward confirmation. A breach of the 1.0700 level will confirm continuing downward pressure.

USDCHF

Outlook Direction: Long

Same story as the Euro, the Swissy enjoyed some serious strengthening which we feel will be short lived. The SNB rate announcement scheduled for later this week will again provide further direction. We don’t expect a repeat of January’s surprise that rocked the markets earlier this year.

GBPUSD

Outlook Direction: Short

The BOE (Bank of England) announcement later this week will provide the answer. Indications do not fare well for Cable in the short term.

USDJPY

Outlook Direction:  Long

It appears the Yen basically shrugged off the ECB rate decision last week and we expect the USD/JPY was not directly affected

USDCAD

Outlook Direction: Long

With continuing weakening in the commodity and oil prices, we expect to see a continuation in the long direction for the USD/CAD. Strong Resistance is expected at the 1.3550/70 level.

Trend Meters

Our Trend Meters are updated daily and available with all ForexSignal.com memberships. See below for the Trend Meters shown for December 8, 2015. Members can login to our ForexSignal.com members only platform to view current Trend Meters at any time.