DXY

The US dollar held a key support level on Thursday, which could provide the platform for a bounce today if all goes well. Crude oil continues to hint at its own potential bounce, whilst the ASX 200 appears to have formed a swing high on the daily chart.

With the US dollar continuing to soften during Monday’s Asian trade, we now wait to see if it can help EUR/USD break above a key resistance level. But with the 200-day MA nearby for the US dollar index, it might may hit a bump in the road.

It seems the dollar correction is finally underway, with the US dollar index suffering its worst single day in one year. And it shows the potential for further losses, even if it has found support for now. Gold also shows the potential to have another crack at $2000.

If the BOJ were going to intervene, it could be argued they'd have done it already. But that doesn't mean the market can't do some of the work for them by sending USD/JPY lower from key resistance levels. And if the US dollar pulls back as I suspect, it places USD/JPY short onto the watchlist.

We’ve seen a slight recovery in the US dollar, but this is to be expected following such a sharp selloff heading into the weekend. But with resistance looming, USD could be setting up for a potential swing trade short over the near term.

The USD is on the ropes as we enter this session, but it’s likely all down to yields as to where the dollar goes next. And we have enough data in the pipeline to make it go one way or the other. The DAX is also clinging to support, but I see the potential for some mean reversion ahead of its next leg lower.

Welcome to another edition of Technical Tuesday. In this week’s report, we will get technical on the S&P 500 and Dollar Index. The benchmark index has bounced back as investors' focus turns to FOMC minutes, CPI and Consumer Sentiment, with US bank earnings also to start on Friday. Meanwhile, the Dollar Index chart shows a potential reversal signal ahead of all these events.

The US dollar has surged on US economic exceptionalism so far this year, but that trend may change in Q4...

A near-term bottom may be in for a USD/CAD rally back toward 1.3300+, depending on Canada’s CPI reading...

With the US Core PCE for January hotter than expected, the US Dollar is continuing its recent rise.

Talk of a 50bp Fed hike in March saw the dollar extend its lead late in the US session, and maintain its trajectory during Asian trade.

With the next FOMC meeting not until March 22nd, the Fed will have plenty more inflation data to look at.

…once again the focus is going to be on inflation and central bank speech.

US economic data has outperformed expectations at an increasing rate, according to the City Economic Surprise Index (CESI)

That surprise 500-thousand-plus job gains we saw on Friday means the market may gravitate towards “higher for longer” narrative

Today’s FOMC meeting was uneventful. However, Powell’s press conference which followed provided less hawkish comments for the markets to feast on

If the data continues to be worse than expected, will the US Dollar continue to be uninfluenced by it?