Today's session can be relatively smooth due to the lack of volatility. Markets in Europe, China and Australia will be closed on Monday for holidays. The economic calendar is also relatively quiet, however, the ISM Services PMI in the US will be the big event for today's session and could have an impact on the US dollar (USD).
If we take a look at eur / usd on the 1-hour time slot chart, we can see that the euro is trying to recover against the USD. The uptrend line and the Fibonacci retracement levels at 61.8% are supporting the bullish momentum in the short term and may increase if the price breaks above EMA 50 (blue line).
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Eur/usd, timeframe H1. Source: xStation 5
On the other hand, we can take a look at the Volatility Index of the S&P 500 (VOLX) which gives us an interesting view of the market. For the first time since February 28, 2020, the price has dropped below 20%, which could give us a bullish signal on the S&P 500 index which relieves some bullish pressure on the US dollar.
VOLX, Daily chart. Source: xStation 5
GBP is the best performing major currencies while EUR and CHF lag the most
Source: currency-strength.com
Henrique Tomé
XTB Portugal
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
