Dollar Index may experience some reversal for end of the quarter

Gregor Horvat Wavetraders

The FX market remains relatively slow (despite USDJPY), but we saw a push to the upside on the Dollar Index to a new high. However, resistance was found quickly. One reason for the higher US dollar yesterday was the higher US yields, while stocks remain trapped in slow consolidation. Hwoever, we may experience some volatility in the next 24 hours due to the end of the month, week, and quarter flows, as traders adjust their trading books.Additionally, the release of GDP, home sales, and core PCE index data from the US could impact the markets as well.

Looking at the Dollar Index hourly time frame, we see a potential ending diagonal, a reversal pattern. So far, there has been some reversal lower, but we need to see 105.60 broken to confirm the top. Alternatively, a triangle pattern is another valid scenario, with a limited upside but might extend above 106.20. In either case, we assume the dollar is trading near resistance.

Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.

Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.