Fundamental Backdrop
1. US economy has proven very resilient in the market.
2. Recent bearish movements stemmed from the drop in consumer confidence and the durable goods printing negative m/m due to Boeing.
3. However, market sentiments revolving around the USD remains bullish amid the stronger than expected economy.
Technical Confluences
1. Price has tapped onto the daily resistance level and has rejected from it.
2. This could be seen as a retracement from the strong bullish movement on the DXY to continue heading higher.
3. Price looks to be able to test the H4 support level at 104.6 before bullish movement continues.
4. Price is resting well above the ichimoku cloud, signifying strong bullish momentum on the DXY.
Idea
I will be looking for price to continue its bullish trend on the DXY and for a new high to be created.
1. US economy has proven very resilient in the market.
2. Recent bearish movements stemmed from the drop in consumer confidence and the durable goods printing negative m/m due to Boeing.
3. However, market sentiments revolving around the USD remains bullish amid the stronger than expected economy.
Technical Confluences
1. Price has tapped onto the daily resistance level and has rejected from it.
2. This could be seen as a retracement from the strong bullish movement on the DXY to continue heading higher.
3. Price looks to be able to test the H4 support level at 104.6 before bullish movement continues.
4. Price is resting well above the ichimoku cloud, signifying strong bullish momentum on the DXY.
Idea
I will be looking for price to continue its bullish trend on the DXY and for a new high to be created.