Slobodan Drvenica
Windsor Brokers
US Dollar Index
The dollar index firmed in early Tuesday trading and pressuring the peaks of recovery leg from 105.37 (Dec 6 low).
Although last Fri/Mon action was shaped in Doji candles and signaled indecision, this was likely a consolidation before recovery resumes.
Fresh bulls probe through cracked Fibo barrier at 106.71 (50% retracement of 108.04/105.37 pullback) with firm break here to generate fresh signal for continuation of recovery leg towards targets at 107.02 /41 (Fibo 61.8% and 76.4% respectively) guarding key barrier at 108.04 (2024 peak of Nov 22, also the highest since Nov 2022).
Near-term bullish bias is expected to remain intact while the price stays above 10DMA (106.32) and deeper dips stay above 106.00 handle
Technical picture on daily chart is overall bullish and contributes to brighter fundamental outlook, as markets anticipate that US interest rates will remain elevated.
Fed is widely expected to cut interest rates by 25 basis points on Wednesday but will remain very cautious in shaping the monetary policy in the near future, as inflation remains elevated and expected to rise further in anticipated economic boost by Trump’s administration, while US economy remains in good condition overall.
Res: 106.86; 107.02; 107.41; 108.00.
Sup: 106.32; 106.00; 105.75; 105.37.
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.
Recommended Content
Editors’ Picks
EUR/USD holds losses below 1.0500 ahead of US data
EUR/USD remains on the back foot below 1.0500 in the European session on Tuesday. A negative shift in risk sentiment revives the haven demand for the US Dollar, while the mixed sentiment data from Germany hurts the Euro, weighing down on the pair ahead of US data.
GBP/USD recovers toward 1.2700 after UK jobs data
GBP/USD clings to small daily gains near 1.2700 on Tuesday. The data from the UK showed that the ILO Unemployment Rate held steady at 4.3% in the three months to October, while the annual wage inflation climbed to 5.2%, helping Pound Sterling hold its ground.
Gold drops below $2,650 ahead of crucial Fed decision on Wednesday
Following Monday's shallow recovery attempt, Gold remains under modest bearish pressure and trades below $2,650 on Tuesday. Growing expectations for a less dovish Fed outlook and elevated US bond yields weigh on XAU/USD ahead of the last FOMC meeting of the year.
Ripple reveals official launch for RLUSD, XRP eyes new all-time high at $4.75
Ripple confirmed in a press release on Monday that its RLUSD stablecoin will officially launch on Tuesday across exchanges, including MoonPay, Uphold, CoinMENA, Bitso and ArchaxEx. Bullish sentiments surrounding the launch could help XRP overcome the $2.58 and $2.92 resistance levels.
Will the Fed cut interest rates again and why is the dot plot important Premium
The Fed is expected to cut interest rates on Wednesday for the third consecutive meeting. Every time the Fed decides on rates, it is a crucial event as it directly affects families and businesses in the United States. Moreover, the Fed’s last meeting of the year will also be important because it will provide the outlook for what it expects to do in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.