Fresh easing of the US dollar in early US trading on Monday, obstructs again attempts to eventually break above multi-day congestion.
Fresh bulls from last Friday’s rally, which generated positive signal on bullish outside day, are still in play and underpinned by north-heading 10SMA, but lack stronger momentum.
Break above key barrier at 108.90 (Fibo 38.2% of 110.67/107.81, reinforced by falling 20SMA) is needed to generate bullish signal for stronger recovery.
On the other side, 10SMA marks initial support at 108.41, loss of which would weaken near-term structure, with extension below 108.16 (Thu/Fri lows) to shift near-term focus lower.
Directionless mode may extends as markets await signals from FOMC meeting on Wednesday.
Fed is widely expected to keep rates unchanged but dovish shift cannot be ruled out on rising concerns about global growth slowdown.
Res: 108.72; 108.80; 108.90; 109.24
Sup: 108.41; 108.16; 108.00; 107.81
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 on renewed USD strength
EUR/USD stays under modest bearish pressure and declined toward 1.0850 in the early European session on Tuesday, pressured by the renewed USD strength. ZEW sentiment survey will be featured in the European economic docket ahead of housing data from the US.
USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions
USD/JPY preserves its bullish momentum after breaking above 150.00 with the 'sell the fact' reaction to the Bank of Japan's decision to end negative interest rates. In the post-meeting press conference, Governor Ueda said they will consider options for easing broadly, including ones used in the past if needed.
Gold price struggles to lure buyers, holds steady above one-week low ahead of FOMC meeting
Gold price ticks lower amid reduced Fed rate cut bets, elevated US bond yields and stronger USD. Geopolitical tensions could lend some support to the safe-haven XAU/USD and help limit losses.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.