DXY : Here's what you need to know to start your week.
DXY
New forecast
The US dollar index faces the risk of ending its 12-week upward streak, with a possible decline to 104.19.
Factors contributing to the dollar's strength include Fed hawkishness, recession fears in the Eurozone, and weak data from Asia
US inflation data could provide more clarity on the future path of interest rates following Friday's strong jobs report, while minutes from the Federal Reserve's latest meeting on Wednesday will also be looked at closely. Meanwhile, the third quarter earnings season begins and energy prices remain in focus. Here's what you need to know to start your week.
Inflation data
The US will release what markets have been waiting for September CPI data this week as investors continue to evaluate the Fed's rate hikes for "a longer period".
The August CPI report showed the fastest increase in 14 months as the cost of gasoline rose, although core inflation, which excludes food and fuel costs, rose at its slowest pace in nearly two years.
Jobs data on Friday showed a larger-than-expected rise in non-farm payrolls last month as wage growth slowed, suggesting that monetary policy may remain tight for some time.
Federal Reserve meeting minutes
The US central bank is set to publish minutes from its September meeting on Wednesday as market watchers look for clues on whether policymakers are leaning toward another interest rate hike before the end of the year.
Beginning of third quarter earnings
The third-quarter earnings season begins with reports from several major banks as Wall Street investors look for a catalyst to revive stocks in the face of rising bond yields.
⭕️This week’s data
⭕️Monday and Tuesday no data
⭕️Important data on Wednesday: American inflation for consumers and producers
Technical abstract :
The index of Dollar witnessed negative performance in trading before the closing of the last sessions of the week,
on the 4H time frame
The price trade in the bullish channel for a long time and now trade at the bottom of channel and above the support zone 105.22 - 105.61,so we have to wait until get out of the channel and breach the support zone then we will sell .
therefore the downward trend scenario will be remain valid and effective when the price breach that level we mentioned above and will try to reach 104.01 as a next negative target ,taking into account that as long as price trade above 105.61 the price will try to be continue at the bullish trend .
On the weekly time frame
As we see the price closed weekly bearish candle and that is first bearish candle since 3 month , the price pullback from that zone strongly so we expect the bearish tendency will be on control during the next week .
support line : 105.61 , 105.22
resistance line : 106.55 , 107.51
Thank you for considering my analysis and perspective and If this post was useful to you , don't forget to subscribe and like ❤️
New forecast
The US dollar index faces the risk of ending its 12-week upward streak, with a possible decline to 104.19.
Factors contributing to the dollar's strength include Fed hawkishness, recession fears in the Eurozone, and weak data from Asia
US inflation data could provide more clarity on the future path of interest rates following Friday's strong jobs report, while minutes from the Federal Reserve's latest meeting on Wednesday will also be looked at closely. Meanwhile, the third quarter earnings season begins and energy prices remain in focus. Here's what you need to know to start your week.
Inflation data
The US will release what markets have been waiting for September CPI data this week as investors continue to evaluate the Fed's rate hikes for "a longer period".
The August CPI report showed the fastest increase in 14 months as the cost of gasoline rose, although core inflation, which excludes food and fuel costs, rose at its slowest pace in nearly two years.
Jobs data on Friday showed a larger-than-expected rise in non-farm payrolls last month as wage growth slowed, suggesting that monetary policy may remain tight for some time.
Federal Reserve meeting minutes
The US central bank is set to publish minutes from its September meeting on Wednesday as market watchers look for clues on whether policymakers are leaning toward another interest rate hike before the end of the year.
Beginning of third quarter earnings
The third-quarter earnings season begins with reports from several major banks as Wall Street investors look for a catalyst to revive stocks in the face of rising bond yields.
⭕️This week’s data
⭕️Monday and Tuesday no data
⭕️Important data on Wednesday: American inflation for consumers and producers
Technical abstract :
The index of Dollar witnessed negative performance in trading before the closing of the last sessions of the week,
on the 4H time frame
The price trade in the bullish channel for a long time and now trade at the bottom of channel and above the support zone 105.22 - 105.61,so we have to wait until get out of the channel and breach the support zone then we will sell .
therefore the downward trend scenario will be remain valid and effective when the price breach that level we mentioned above and will try to reach 104.01 as a next negative target ,taking into account that as long as price trade above 105.61 the price will try to be continue at the bullish trend .
On the weekly time frame
As we see the price closed weekly bearish candle and that is first bearish candle since 3 month , the price pullback from that zone strongly so we expect the bearish tendency will be on control during the next week .
support line : 105.61 , 105.22
resistance line : 106.55 , 107.51
Thank you for considering my analysis and perspective and If this post was useful to you , don't forget to subscribe and like ❤️
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