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All the lower-tier U.S. reports scheduled today got me looking at the U.S. dollar index!

Think the Greenback will continue to fall against its major counterparts?

Before moving on, ICYMI, yesterday’s watchlist looked at CAD/JPY for retracement opportunities ahead of Canada’s CPI release. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Canada’s inflation surges more than expected, hitting a 31-year high of 6.7% in March

U.S. existing home sales fall 2.7% in March as house prices reach all-time highs

EIA: U.S. crude stockpiles slump as export surge to more than 2-yr high

New Zealand inflation hits a 32-year high of 6.9%

Asia shares fall on China slowdown fears, but lower yields limit losses

Gold nudges lower as U.S. bond yields resume charge

Upcoming Potential Catalysts on the Forex Economic Calendar:

Final Eurozone CPI readings at 9:00 am GMT
U.S. Philly Fed manufacturing index at 12:30 pm GMT
U.S. initial jobless claims at 12:30 pm GMT
Eurozone’s consumer confidence at 2:00 pm GMT
BOE Governor Bailey to give a speech in DC at 4:30 pm GMT
Fed Chairman Powell and ECB President Lagarde to participate in a “Debate on the Global Economy” panel discussion at 5:00 pm GMT
AU flash manufacturing and services PMIs at 11:00 pm GMT
Japan’s national core CPI at 11:30 pm GMT
Japan’s flash manufacturing PMI at 12:30 am GMT (Apr 22)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: U.S. Dollar Index

U.S. Dollar Index 1-hour Chart

U.S. Dollar Index 1-hour Chart

There are not a lot of top-tier economic releases scheduled in the next trading sessions, but a couple of U.S. economic reports might put the dollar under the spotlight.

Philadelphia’s manufacturing index, for example, is scheduled at 12:30 pm GMT at the same time as last week’s initial jobless claims numbers.

And then there’s Powell’s panel discussion at an IMF event in D.C. While there are no bombshells expected, the Fed’s tightening schedule may be put under the spotlight and remind traders that the Fed is one of the more hawkish central banks out there.

Will Powell’s speech help the U.S. dollar index today?

As you can see, DXY has just broken a trend line support that sellers had been respecting since the start of the month. More importantly, the last candlesticks are so bearish that we may see continued selling in the next few hours.

Watch how the index reacts to the 100.00 psychological handle or the 99.75 zone that represents a 100% Fibonacci extension of the index’s last major downswing.

If the index dips below 100.00 and breaks the 99.60 previous support zone, then we could see the dollar lose pips against its higher-yielding counterparts.

But if DXY sees green sprouts in the next trading sessions, then the dollar’s bullish trends could extend across the board.