Dollar Index: Vulnerable support ahead of CPI inflation data

Aaron Hill FP Markets

Ahead of this week’s CPI inflation print, the US Dollar Index has moderately bounced back from support at 102.78. Despite benefiting from additional channel support (taken from the low of 103.65) and the Relative Strength Index (RSI) recently shaking hands with oversold space (< 30.00), bullish resolve from the support has been uninspiring.

Lacklustre rebound from support

The lacklustre reply from support could be due to sentiment favouring bears; since topping at 106.13 in late June, sellers have dominated price action, pushing the unit through the 200-day Simple Moving Average (SMA) at 104.21.

Further downside?

Should bulls change gears and extend the pullback from support, resistance at 104.02 calls for attention. This base also shares chart space with channel resistance (extended from the high of 106.13), and the 200-day SMA underlined above. Alternatively, in light of the feeble response from current support and sentiment favouring downside at this point, breaching current support could be on the table this week, with the pendulum swinging in favour of reaching support from 101.78 and 101.01.

Author

Aaron Hill

FP Markets

After completing his Bachelor’s degree in English and Creative Writing in the UK, and subsequently spending a handful of years teaching English as a foreign language teacher around Asia, Aaron was introduced to financial trading,

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD consolidates previous week's gains above 1.1500

EUR/USD struggles to build on the previous week's impressive gains but manages to hold comfortably above 1.1500 on Monday. The USD loses traction and helps the pair hold its ground following US President Trump's call off an attack on Iran and that talks between the two sides would happen on Monday. Traders will closely monitor the developments surrounding US-Iran negotiations and US ISM PMI data.

Gold extends range play below $4,100 as focus remains on Middle East

Gold struggles to capitalize on its weekly bullish gap and remains below the $4,100 mark in the second half of the day. The US Dollar stages a modest recovery from its lowest level since June 17, which is seen capping the upside for the commodity. The upside for the USD, however, seems limited amid renewed hopes for a US-Iran peace deal and receding US Fed rate-hike expectations.

Week ahead: US payrolls report and AI earnings to keep investors on edge

After the Fed decision, NFP report awaited for more rate hike clues. Employment also on the agenda in Canada and New Zealand. Chinese trade and Japanese wage data to be watched too. But Iran and AI headlines to remain in driver’s seat for risk sentiment.

Solana risks a steeper decline below $70 despite steady ETF inflows

Solana (SOL) is trading in the red, losing bullish momentum and remaining capped below its 50-day Exponential Moving Average at $75.68. SOL-focused Exchange Traded Funds show resilience with a monthly inflow of $14.62 million in July, while the near-term retail support wanes with the funding rate turning negative.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.