• US dollar could be ripening for a move to the upside from critical support. 
  • The bulls are eyeing a break of 112.70.

The US dollar has been in demand for months due to worries over growth in China, the Eurozone, and various other economies while investor confidence have been undermined even more so in the past couple of weeks.

''In our view the USD is set to remain firm until the Fed are content that US inflation is falling and that inflation expectations are well anchored.  That is likely to be some months away. We remain USD bulls. We are targeting EUR/USD0.9500 but see risk of break below this level,'' analysts at Rabobank argued. 

Meanwhile, the open looks set to be a bullish play for the greenback, so long as the 111.40-112.00 area holds as the following hourly chart illustrates: 

DXY H1 chart

The harmonic pattern played out with the bears moving in at a key resistance structure to push the price all the way into the neckline of the formation in a significant retracement towards the 78.6% Fibonacci level. For the open, bulls will be in anticipation of a move towards the prior resistance near 112.70. This puts the focus on the downside for corresponding pairs such a cable:

(GBP/USD H1 chart)

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD preserves its recovery momentum and trades near 1.0500 in the European session. Despite the risk-averse market atmosphere, the US Dollar is struggling to find demand ahead of mid-tier data releases, helping the pair hold in positive territory.

EUR/USD News

GBP/USD clings to recovery gains above 1.2150

GBP/USD clings to recovery gains above 1.2150

GBP/USD gained traction and climbed above 1.2150 during the European trading hours. The modest US Dollar weakness provides a boost to the pair as the market focus shifts to third-quarter Unit Labor Costs data from the United States.

GBPUSD News

Gold price struggles to gain traction, holds above $1,770

Gold price struggles to gain traction, holds above $1,770

Gold price is having a difficult time gathering bullish momentum and continuing to fluctuate in a tight range slightly above $1,770. The benchmark 10-year US Treasury bond yield holds steady above 3.5% ahead of US data, not allowing XAU/USD to find direction.

Gold News

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan will work alongside Al Fardan Exchange LLC in the United Arab Emirates (UAE) to power faster transaction settlement and transfers in fiat currencies.

Read more

Are global rate markets too complacent about central bank intentions for 2023?

Are global rate markets too complacent about central bank intentions for 2023?

Markets and economists are split between a 25 bps and a 50 bps rate hike (bringing the key rate to 4% or 4.25%) but are eager to hear about the Bank of Canada’s future guidance.

Read more

Forex MAJORS

Cryptocurrencies

Signatures