Slobodan Drvenica
Windsor Brokers
US Dollar Index
The dollar index hit new highest in two and a half months following fresh acceleration higher on Wednesday, sparked by renewed hawkishness from Fed.
Comments that there are no significant reasons for the central bank to pause its rate hiking cycle and growing signals that the Fed may keep high borrowing cost longer, provided boost to the greenback.
Fresh gains generate initial signal of bullish continuation after the action was paused for consolidation in past three days and pressuring targets at 104.58/70 (Fibo 76.4% of 105.85/100.45 / Mar 15 lower top), break of which would unmask key barriers at 105.49/85 (200DMA / Mar 8 top).
Overbought daily studies warn of possible extended consolidation, with larger bulls expected to remain intact while holding above 103.75 zone (higher base / broken Fibo 61.8% / rising 10 DMA).
Near-term action may also move at a lower pace as markets await release of US labor report for May on Friday, which is expected to generate stronger signals and also give more evidence about
Fed’s decision in mid-Jube policy meeting.
Stronger than expected NFP numbers (180K f/c) would further boost the greenback and also raise probability of another rate hike in June.
Res: 104.58; 104.70; 105.49; 105.85.
Sup: 103.91; 103.75; 103.15; 102.83.
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.
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