The greenback index continues to tug again to a brand new low
- On Tuesday, the greenback index managed to climb as much as 104.80 stage.
Greenback chart evaluation
On Tuesday, the greenback index managed to climb as much as 104.80 stage. After the formation of the weekly excessive, the index started to lose quantity and switch to the bearish facet. We noticed an try to carry above the 104.50 stage, nevertheless it all resulted in failure for the greenback. The decline didn’t cease there, however we noticed a continuation right this moment. Throughout this morning’s Asian buying and selling session, the greenback index initiated a powerful bearish consolidation, falling under the EMA 200 and the weekly open value.
That step solely strengthened the bearish momentum, which continued to push us decrease to a brand new weekly low at 103.93. Even the potential help on the 104.00 stage didn’t final, however we noticed a break under. Primarily based on the present image, we are able to anticipate additional retreat and a brand new decrease low formation. Potential decrease targets are the 103.90 and 103.80 ranges.
The Fed decides tonight on the destiny of the greenback, will it reserve it from additional decline?
For a bullish choice, the greenback index must stabilize above the 104.00 stage to start with. If the index succeeds on this, it may well hope for a restoration and a transfer to the bullish facet. After that, it ought to begin a bullish consolidation and transfer to increased ranges. Potential increased targets are the 104.10 and 104.20 ranges.
We anticipate crucial information from the US market tonight: the Fed will announce the long run rate of interest. This can be a essential occasion that would considerably affect the market. Economists forecast that the rate of interest may stay at 5.50%. Half an hour later, we’ve got a press convention that would point out the Fed’s future financial coverage.
