Is the U.S. greenback bracing to increase its late September uptrend?
The U.S. Greenback Index (DXY) is quick approaching a key assist zone that might attract shopping for strain.
Right here’s what we’re seeing on the 4-hour time-frame:
U.S. Greenback Index (DXY) 4-hour Foreign exchange Chart by TV
The U.S. greenback is giving again a part of final week’s positive aspects as merchants flip cautious forward of a doable authorities shutdown.
Uncertainty can also be hanging over this week’s labor market stories, particularly after a number of FOMC members harassed upside inflation dangers and their data-dependent stance.
Do not forget that directional biases and volatility situations in market worth are sometimes pushed by fundamentals. If you happen to haven’t but executed your fundie homework on the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on day by day basic information!
DXY, which has been making increased highs and lows since mid-September, turned decrease from 98.60 and is now hovering close to the 98.00 psychological degree.
We’re watching the 97.75 zone, which strains up with the 50%–61.8% Fib retracement of September’s upswing, a damaged descending channel resistance, the 200 SMA on the 4-hour chart, and pattern line assist.
Bullish candlesticks and sustained shopping for from that space may ship DXY again to 98.00, if not the 98.50 mark or new September highs.
But when the downswing extends, the index may slip under pattern line assist and retest 97.50 on the damaged channel and final week’s lows.
Whichever bias you find yourself buying and selling, don’t overlook to observe correct danger administration and keep conscious of top-tier catalysts that might affect general market sentiment!
If you happen to’re not acquainted with the DXY, try our lesson, What’s the US Greenback Index?
Disclaimer:
Please bear in mind that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only real duty of every particular person dealer. Please commerce responsibly.
