FX traders are poised to drive the dollar even higher due to a confluence of seasonal and technical factors working in favor of the greenback.
Historical data indicates that the dollar tends to appreciate more often than not during August, and this positive seasonal pattern is expected to continue this year.
The USD index, which measures the dollar against a basket of six major currencies, recently closed above the previously breached level of 103.484 Fibonacci. This level represents a 76.4% retracement of the drop from 104.700 in May to 99.549 in July. This breakthrough has brought the May peak of 104.700 back into focus, especially given that the 14-day momentum remains in positive territory.
However, the dollar experienced a slight retreat from its recent two-month high reached on Tuesday. Investors are closely watching the speech by the Federal Reserve chair at this week's Jackson Hole Symposium for insights into the future direction of monetary policy. Should the USD index fail to close the week above the 103.484 Fibonacci level, it could signal a potential peak in the U.S. currency.
GBPUSD BUY 1.2700 - 1.2720 🔼🔼
✔️TP1: 1.2760
✔️TP2:1.2780
🚫SL 1.26700
Historical data indicates that the dollar tends to appreciate more often than not during August, and this positive seasonal pattern is expected to continue this year.
The USD index, which measures the dollar against a basket of six major currencies, recently closed above the previously breached level of 103.484 Fibonacci. This level represents a 76.4% retracement of the drop from 104.700 in May to 99.549 in July. This breakthrough has brought the May peak of 104.700 back into focus, especially given that the 14-day momentum remains in positive territory.
However, the dollar experienced a slight retreat from its recent two-month high reached on Tuesday. Investors are closely watching the speech by the Federal Reserve chair at this week's Jackson Hole Symposium for insights into the future direction of monetary policy. Should the USD index fail to close the week above the 103.484 Fibonacci level, it could signal a potential peak in the U.S. currency.
GBPUSD BUY 1.2700 - 1.2720 🔼🔼
✔️TP1: 1.2760
✔️TP2:1.2780
🚫SL 1.26700
