Slobodan Drvenica
Windsor Brokers
US Dollar Index
The dollar dipped further on Tuesday morning, extending pullback into second consecutive day after bulls repeatedly failed to break through pivotal Fibo support at 102.52 (38.2% of 105.85/100.45 downleg).
Upside rejection formed a double-top and signals a bull-trap, which adds to the downside pressure.
Conflicting signals on daily chart (strong bullish momentum, overbought stochastic and MA’s in mixed setup) require caution as last week’s strong recovery stalled at a breakpoint zone, also weighed by the nearby base of falling and thickening daily Ichimoku cloud (102.68).
The action failed to violate these barriers and generate fresh bullish signals for further gains, as subsequent pullback shifts near-term risk to the downside, although hopes that bulls may regain ground would be still alive if dips stay above 101.70 (broken Fibo 23.6% / daily Tenkan-sen).
Near-term action remains weighed by uncertainty over debt ceiling crisis, as President Biden was optimistic, while Republicans say that two sides are still far from reaching a deal, ahead of the expected meeting later today.
Res: 102.52; 102.68; 103.15; 103.26.
Sup: 101.91; 101.70; 101.52; 101.09.
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 stays depressed near 1.0650, awaits US data and Fed verdict
EUR/USD holds lower ground near 1.0650 amid a softer risk tone and broad US Dollar strength on Wednesday. With European markets closed for Labor Day, the pair awaits the US employment data and the Fed policy announcements for the next directional move.
GBP/USD keeps losses below 1.2500 ahead of US data, Fed
GBP/USD holds lower ground below 1.2500 early Wednesday. The stronger US Dollar supports the downtick of the pair amid the cautious mood ahead of the top-tier US employment data and the all-important Fed policy announcements.
Gold sellers keep sight on $2,223 and the Fed decision
Gold price is catching a breather early Wednesday, having hit a four-week low at $2,285 on Tuesday. Traders refrain from placing fresh directional bets on Gold price, anticipating the all-important US Federal Reserve interest rate decision due later in the day.
Ethereum dips below key level as Hong Kong ETFs underperform
Ethereum experienced a further decline on Tuesday following a disappointing first-day trading volume for Hong Kong's spot Bitcoin and ETH ETFs. This comes off the back of increased long liquidations and mixed whale activity surrounding the top altcoin.
Federal Reserve meeting preview: The stock market expects the worst
US stocks are a sea of red on Tuesday as a mixture of fundamental data and jitters ahead of the Fed meeting knock risk sentiment. The economic backdrop to this meeting is not ideal for stock market bulls.