DXY: Near term consolidation on the cards – OCBC
|The US Dollar (USD) eased slight overnight in response to Fed official Waller’s comments. DXY was last at 106.25, OCBC’s FX analysts Frances Cheung and Christopher Wong note.
Daily momentum is mild bearish
“Waller sees more rate cuts likely needed ‘over time’ and inches towards rate cut for Dec while Williams sees overall trend of rates coming down. Implied probability of 25bp rate cut for Dec FOMC has shifted to 75%.”
“Daily momentum is mild bearish though RSI rose. Near term rebound not ruled out but likely to see consolidation. Resistance at 106.50, 107.20. Support at 106 (21 DMA), 105.40 levels (38.2% fibo), 104 (50, 200 DMAs).”
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.