US DOLLAR INDEX
Strong risk aversion hit markets on Thursday as fading prospects for economic recovery after European governments tightened restrictions to battle an accelerating second wave of coronavirus, prompted investors into safety.
The dollar was the top gainer of the European session, with dollar index being up nearly 0.4% for the session.
Fresh advance extends recovery from 92.99 (09 Oct low) into fourth straight day and cracks important barriers at 93.67/74 (Fibo 38.2% of 94.78/92.99/20DMA). Bulls look for clear break here that would generate fresh signal for recovery extension towards next pivots at 94.00/09 (round-figure/Fibo 61.8% of 94.78/92.99).
Fundamentals work in favor of greenback but technical studies lack clearer signal as RSI and Stochastic are heading north but momentum indicator remains in negative territory.
However, today's action is on track to form bullish engulfing pattern that would add to positive signals, with close above 92.70 required to confirm. Converged 10/30DMA's mark initial support at 93.54, guarding lower pivot at 93.28 (55DMA).
Res: 93.75; 93.95; 94.09; 94.35
Sup: 93.54; 93.41; 93.28; 93.10
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.