USD can make a pullback as US yields drop

Gregor Horvat Wavetraders

USD keeps moving higher, possibly on speculation that House vote on U.S. debt ceiling today will pass today. However, stocks are down, which can have something to do with China, where the PMI index declined once again, and also faster than expected. Technically speaking, USD is in uptrend, but yields found some resistance recently so I am wondering if USD is possibly also going tohav elimited gains. Looking at DXY hourly chart we see nice recovery, but now in late stages of an impulse from May 04 so we are aware of a pullback, possibly will show up as we will get an outcomen from the House vote, or USD can slow down later this week when we will get the US NFP data. But keep in mind that we will be tracking only a correction here on XXX/USD pairs and that more upside will be expected for the USD, once DXY makes three wave retracement.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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