The U.S. dollar finished Friday’s trading session largely unchanged against the other major currencies; this after the U.S. February jobs data came in just a touch better than expected.
The U.S. dollar could continue its recent weakness in the week ahead as investors continue to bed that interest rates in the euro-zone will rise ahead of those in the U.S.; the world’s biggest economy.
While the dollar has been regarded as a safe haven in times of turmoil, some investors suggest higher oil prices would push other central banks to raise interest rates to counter inflation even as the Fed maintains its stimulative monetary policy, which would again leave investors chasing yield with little choice but to sell the dollar.
Trading Setups / Chart in Focus:
The EURUSD tested the waters above 1.4000 today, the pair could not close above this psychological level though, ending the day around 1.3984. Support sits down near the 8 day ema and the horizontal breakout level near 1.3850. Pullbacks towards this support should be watched for possible bullish price action setups.
Gold held the line today. The metal bounced up and formed an inside bar after yesterday’s flirt with the 8 day ema dynamic support area. Further upside gains are possible if the inside bar structure breaks to the upside.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading education website.
On Wall Street today stocks fell as fears of more geopolitical turmoil and higher oil prices stalled the recent rally in equities.
The Dow lost 88.32 points, or 0.72 percent, the S&P 500 dropped 9.82 points, or 0.74 percent, and the Nasdaq lost 14.07 points, or 0.50 percent.
Upcoming important economic announcements: 3/6/2011
4:45pm EST: New Zealand – Building Consents m/m
7:30pm EST: Australia – ANZ Job Advertisements m/m
8:30am EST: Canada – Building Permits m/m