Big Week For DXY. Short-Term Review

1月29日

This week will be a major one for the US dollar index, as the amount of economic data released from the US might raise volatility of the instrument significantly and spark interest among traders. Apart from the JOLTS, ADP, Chicago PMI, ISM Manufacturing PMI and NFP, we also get the first one of this year’s Fed interest rate decisions on Wednesday. Currently, USXUSD is ranging roughly between the 102.83 and 103.60 levels, meaning that traders and investors are waiting for one of the economic events to bring it out of that sideways action. While the rate stays inside that range, we will remain neutral.

A break above the upper side of the range, at 103.60, may signal the rising appetite of the bulls, as a forthcoming higher high would be confirmed. USXUSD could then travel to the highest point in December, at 104.26. If that doesn’t stop the buyers, the next possible target might be 104.68, which is the low of November 6th.

Alternatively, to consider lower areas, a drop below the lower side of the aforementioned range, at 102.83, which is also marked by the high of January 5th, would also place USXUSD below the 200 EMA on our four-hour chart. Such a move could temporarily spook the bulls from the field, allowing the bears to take control. This may open the door for the rate to slide all the way to the 101.62 territory. That territory is marked near the lows of December 15th and Janay 5th.

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