Hi Traders!
The US dollar index has bounced back and is trading again above the 100 level ahead of next week's interest rate announcement from the Federal Reserve.
Analysing the technical price action on the 1D chart, we had a huge impulsive bearish wave from the 103 level to break the long-term support level at 101.921 and close below the psychological 100 level to finish at 99.578.
The market has since bounced off 99.578, and we are now currently in a retracement wave of the bearish move. The price action looks bullish, but we must be careful here due to next week's interest rate decision from the Federal Reserve.
Rates are expected to be increased by 25 basis points to 5.50%. If rates are not increased, this will be massively bearish for the US dollar, as this will be seen as weakness, and we are very likely to get new waves of bears to push the market back under 100 again and test 99.578. If rates are increased as expected, we can expect a further push to the upside to test the 101.921 resistance level. There is also a 61.8% Fibonacci level just above 101.921 at 102.046, which we have marked on the chart.
Please do not forget to like, comment, and follow, as your support greatly helps us.
Thank you for your continued support!
BluetonaFX
The US dollar index has bounced back and is trading again above the 100 level ahead of next week's interest rate announcement from the Federal Reserve.
Analysing the technical price action on the 1D chart, we had a huge impulsive bearish wave from the 103 level to break the long-term support level at 101.921 and close below the psychological 100 level to finish at 99.578.
The market has since bounced off 99.578, and we are now currently in a retracement wave of the bearish move. The price action looks bullish, but we must be careful here due to next week's interest rate decision from the Federal Reserve.
Rates are expected to be increased by 25 basis points to 5.50%. If rates are not increased, this will be massively bearish for the US dollar, as this will be seen as weakness, and we are very likely to get new waves of bears to push the market back under 100 again and test 99.578. If rates are increased as expected, we can expect a further push to the upside to test the 101.921 resistance level. There is also a 61.8% Fibonacci level just above 101.921 at 102.046, which we have marked on the chart.
Please do not forget to like, comment, and follow, as your support greatly helps us.
Thank you for your continued support!
BluetonaFX
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
JOIN OUR FREE TELEGRAM CHANNEL
t.me/bluetonaFX
t.me/bluetonaFX
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.