Dollar faces resistance as markets look for direction

Frank Walbaum

Important news this week

Fri, 09th, 14:30 CET CA Unemployment Change/Employment Rate

Dollar faces resistance as markets look for direction

The US Dollar remains positive but needs to overcome key resistance before the current move can extend. The weekly chart is beginning to look toppish, raising the possibility of a correction. Meanwhile, equity indices are turning higher again, suggesting that the broader upward trend could continue. Bitcoin is slightly positive, while most altcoins remain weaker, although the broader bullish trend appears intact.
Oil is holding near support and could rebound, but for now the market remains in wait-and-see mode. Today’s Canadian employment report is an important catalyst for the CAD, with employment change and the unemployment rate in focus.

Market talk

The Dollar’s next move will depend partly on whether resistance holds and how bond yields develop. Elevated yields can support the USD by making dollar-denominated assets more attractive, while a sustained retreat in yields could give the currency room to correct. Markets will also be watching whether incoming economic data changes expectations for the Federal Reserve’s next policy steps.
Oil remains caught between supply risks and uncertainty about global demand. Any improvement in demand expectations or renewed supply disruptions could support a rebound from current support. If buyers fail to step in, however, a break lower could open the door to further losses.

Tendencies in the markets

Equities mixed, USD positive, crypto weak, oil sideways, metals positive, JPY weak.

Author

Frank Walbaum

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