USD strength continues as DXY tests 102.00

Frank Walbaum

Important News this week

Wed, 07th, 20:00 CET US FOMC Meeting Minutes.

Fri, 09th, 14:30 CET CA Unemployment Change / Employment Rate.

USD strength continues as DXY tests 102.00

The US Dollar remains strong, while stocks continue to hold solid despite the ongoing USD strength. The DXY opened higher into the European session and is again approaching the 102 resistance zone. A break above this level could signal that the current USD trend has further room to run.

USD/CAD is showing signs of weakness and could move into a correction, with the 1.4200 zone remaining an important level to watch. Metals are moving lower, while the Japanese Yen is showing some renewed strength.

Market talk

The 102 level on DXY remains the key technical area for the Dollar. If resistance breaks, USD strength could accelerate as the market looks for the next technical target. A failure to break could instead lead to some profit-taking after the recent move higher.

USD/CAD is another pair worth watching as the Canadian Dollar starts to recover. A move below the 1.4200 zone could strengthen the correction and signal that some of the recent USD gains against CAD are being unwound.

Tendencies in the markets

Equities positive, USD strong, crypto correcting, oil weak, metals down, JPY weak.

Author

Frank Walbaum

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