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.
. Although last Fri/Mon action was shaped in Doji candles and signaled indecision, this was likely a consolidation before recovery resumes.){kind=link}