Intraday U.S. Dollar Rally Fizzles near the Close

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Today’s sample of Forex Analysis from ForexHound.com


At the midsession, it appeared the U.S. Dollar was in a position to reverse today’s trend and finish higher for the day, but bullish news from Intel after the close helped drive up demand for higher risk assets.

The EUR USD finished higher despite a less than friendly German consumer confidence report. Traders have decided to focus on the future rather than old economic data. This is helping to give the Euro its current boost. The Euro made a new high for the year today, but there was no acceleration to the upside. This is leading some analysts to believe that this currency pair is overbought at current levels.

This morning a bearish U.K. inflation report initially drove the GBP USD lower, but traders quickly bought the dip to trigger a higher close by the end of the day. The closing price reversal bottom does not change the trend to up, but indicates the start of a 2 to 3 day rally. The chart indicates a move to 1.5913 to 1.5962 is likely over the short-term.

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