technical analysis of currencies; The US dollar extends its gains after raising interest rates

technical analysis of currencies; The US dollar traded near its highest levels in two weeks against many other major currencies during trading today, Friday, in the European session, with the US dollar heading to record the second weekly rise in a row. This support comes from the impact of the Federal Reserve raising interest rates by 25 basis points for the second time. During this year, the US is expected to release important data on the housing sector for the month of May later in the day and other data on consumer confidence for the month of June.

At 11:25 GMT, the US dollar index traded at 97.37 points, from the opening level of trading today at 97.32 points, and it recorded the highest level at 97.54 points, while it recorded the lowest level at 97.28 points.

At the end of trading yesterday, the US dollar index gained about 0.6%, the largest since May 8, to reflect the rise in US dollar purchases against most other currencies, especially the low-yielding currencies, which are the euro and the Japanese yen.

Throughout this week's trading, the index rose by 0.2%, heading towards recording the second weekly rise in a row, due to the Federal Reserve raising interest rates for the second time this year, in addition to its indication of raising them for the third time during the second half of this year.

On Wednesday, the Reserve Bank announced that it raised interest rates by 25 basis points to reach the level of 1.0%:1.25% for the second time, after it raised it for the first time during its meeting in March. The labor sector, and stressed that the current declining inflation rates are only a temporary situation and will not continue at this pace.

The US is due to release important housing data for the month of May and other data on consumer confidence in the economy during the month of June.

The data announced about the housing sector is represented in the number of building permits for the month of May, and expectations are that it will record about 1.25 million permits, while it was recorded in the month of April about 1.23 million permits, and the number of houses that began to be built will be issued during May and is expected to record About 1.23 million homes compared to the month of April, which recorded 1.17 million homes.

At the same time, the preliminary reading of the University of Michigan's consumer confidence index for the month of June will be published, and it is estimated that it will reach the level of 97.1 points, while the final reading for the month of May recorded 97.1 points.

A look at the EUR/USD trading June 16th 2017

Currency technical analysis

Currency technical analysis

The EUR/USD pair rebounded towards the upside in an attempt to target the 23 Fibo line, after the price failed to breach the support level in conjunction with the 38 Fibo line, as shown in the graphic

Both MACD and Stochastic are showing a positive crossover towards the upside, targeting the price level 1.1230.


Mohamed Abdel Khaleq

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