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Talking Points:
- AUDUSD can't quite break through $0.8900.
- EURUSD GBPUSD stuck in month-long ranges.
- Target on US Dollar’s Back this Week with FOMC GDP Due
The FOMC threw the US Dollar a bone yesterday by leaving its name absent from its policy statement. Weeks earlier policymakers queued the US Dollar up for disappointment when it laid partial blame on the greenback for why inflation expectations have been floundering.
The tune laid out yesterday was quite different. Acknowledging only that market-measures of inflation were down and that survey-measures were stable the Fed did not include any commentary regarding threats to the domestic inflation picture due to disinflation among trading partners or the strength of the US Dollar.
If anything this small lifeline to the greenback has prevented a major covering rally in the short-term. Futures positioning remains aggressively long and the retail crowd has started to shift into net-long USD positions. While the US Dollar may have been on the verge of technical weakness 24-hours ago time has been bought and many of the ranges carved out over the past month have held.
See the above video for the technical implications in AUDUSD EURUSD and GBPUSD as we shift focus to longer-term setups as we wait for the recent ranges to break.
Read more: Trade Setups in EUR/USD GBP/USD AUD/USD Ahead of FOMC Meeting
--- Written by Christopher Vecchio Currency Strategist
To contact Christopher Vecchio e-mail cvecchio@dailyfx.com
Follow him on Twitter at @CVecchioFX
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