Market news
13.11.2022, 21:32

US Dollar bulls could start to emerge in the opening sessions

  • US Dollar is meeting a key support area for the open. 
  • Bulls are lurking on the backside of the hourly trendline. 

The US Dollar DXY index broke out of the week's channel between 111.25 and 109.40 in the final two days of the week on the back of the US Consumer Price Index. DXY dropped to a fresh low of 106.28 on Friday, extending the post-CPI dump into a fresh layer of potential support. 

O(n Friday, the US Treasury market was closed for the Veterans Day Holiday, but investors cheered a slight softening of China’s COVID restrictions which helped risk assets to run higher, weighing on the greenback as investors favored riskier currencies. DXY was down about 3.8% over two sessions, on pace for its largest two-day percentage loss since March 2009.

For the week ahead, Federal Reserve speakers are likely to push back on the overly dovish market reaction after the October CPI report. This could see the greenback correct as the following analysis will illustrate. ''Officials will make clear that following the positive news on the inflation front, there must be further evidence of sustained monthly core inflation that is more in line with their 2% target,'' analysts at TD Securities argued. ''And given the persistent strength of the labor market, this may take a while.''

US Dollar technical analysis

The bears are now meeting support at the lower quarter of the 106 area which could serve as a foundation for a significant correction.  A break of 108.00 opens the risk of a prolonged reversion up the Fibonacci scale towards 109.50. 

Meanwhile, eyes will be on the lower time frames for confirmation of a deceleration of the downside:

The index remains on the front side of the micro trendline on the hourly trend, so until it breaks through, the downside remains intact. 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location