Slobodan Drvenica
Windsor Brokers
The dollar index rose to three-week high on Tuesday, following stronger than expected US JOLTS data and consumer confidence.
Solid numbers add to view that the US economy remains resilient and offered fresh support to dollar.
Bulls cracked barrier at 104.55 (50% retracement of 105.78/103.31 / daily Kijun-sen), with break here to expose the base of thinning daily cloud (104.73) which is also magnetic.
Near-term action is biased higher following Monday’s close above 200DMA (104.11), although caution is still required as MA’s are in mixed setup and north-heading 14-d momentum is still in negative territory.
Sustained break of 104.55 pivot to improve near-term structure for attack at daily cloud (spanned between 104.73 and 104.89).
Only return and close below 200DMA would sideline bulls.
Markets look for fresh signals from key economic releases for the dollar this week – FOMC rate decision and US labor data.
Res: 104.55; 104.73; 104.89; 105.20
Sup: 104.26; 104.11; 103.80; 103.67
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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