The Dollar Index hit levels last week that have not been seen in some eight months, a heavy retracement followed rapidly with the Euro benefitting from this retracement and also comments from Mr Draghi.
Our analysis for this week on the Dollar Index has led us to the following conclusions:
84.10 is a major level and a double top has been formed here. We are anticipating that should this level be touched again we would expect a rapid retrace of at least fifty points.
81.85 is the baseline support level for both the Head and Shoulders and Double Top formations.
83.50 is the intermediate resistance level on the Daily chart where we see in the near term should that level be reached we would expect to see at least a 25 point retracement.
Our analysis for this week on the Dollar Index has led us to the following conclusions:
84.10 is a major level and a double top has been formed here. We are anticipating that should this level be touched again we would expect a rapid retrace of at least fifty points.
81.85 is the baseline support level for both the Head and Shoulders and Double Top formations.
83.50 is the intermediate resistance level on the Daily chart where we see in the near term should that level be reached we would expect to see at least a 25 point retracement.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD edges higher toward 1.2600
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold rebounds above $2,310 after downbeat NFP data, eyes on Fedspeak
Gold price trades in positive territory above $2,310 after closing the previous week in the red. The weaker-than-expected US employment data have boosted the odds of a September Fed rate cut, hurting the USD and helping XAU/USD find support.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.