Slobodan Drvenica
Windsor Brokers
US Dollar Index
Wide post-Fed swings signal that the dollar is still looking for direction, as long-tailed Wednesday’s candle and long upper shadow forming today, support scenario of extended directionless mode.
Short-lived spike below psychological 100 support (hit 14-month low in immediate reaction to Fed’s decision) was followed by rise to one-week high, which failed to sustain gains, keeping the price within a range.
Confronting signals from a jumbo rate cut and renewed narrative of soft landing, due to still resilient economy, keep the dollar on hold for now.
On the other hand, daily studies remain in full bearish setup and contribute to signals of continuation of larger downtrend, after recent correction (100.38/101.79) was completed.
However, bears need to register a weekly close below 200WMA (100.33) and clear break below 100 level, to open way for extension of the bear-leg from 105.78 (Jun 28 high), towards a higher base at 99.20 zone (July 2023) and Fibo support at 98.92 61.8% of 89.15/114.72 uptrend).
Near-term action is expected to remain biased lower while holding below converged descending 10/20DMA’s (100.91/101.01).
Res: 100.91; 101.01; 101.37; 101.79.
Sup: 100.00; 99.86; 99.20; 98.92.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
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Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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