The US Dollar has struck a double-whammy with positive US data and a disappointing ECB on Thursday.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• The US Dollar has struck a double-whammy with positive US data and a disappointing ECB on Thursday.
• Traders see the PCE print not really suprising or calling for a rate cut in the coming months.
• The US Dollar Index breaks out of a range and could finally be able to trade away from i

The US Dollar (USD) is steady to sideways this Friday ahead of the US opening bell in the aftermath of the US tripod print of US Gross Domestic Product – Durable Goods – Jobless Claims on Thursday. At that same time the European Central Bank (ECB) disappointed the market by not sticking out its neck and providing forward guidance to the markets on rate cuts. Traders were quick to punish the Euro and favor the Greenback on the back of these events.

On the economic front, traders have little to get excited about with the Personal Consumption Expenditures (PCE) falling perfectly in line with expecations. Only element that tilts to a bit of US Dollar weakness is the Core PCE number on the yearly timeframe that heads from 3.2% ot 2.9%, where 3% was expected. Though, traders are not betting on this 10 basis points undershooting of estimate will be enough for the US Federal Reserve to start cutting in March already.

The US Dollar Index (DXY) is having a copy-paste moment from earlier this week of last week’s performance. Again the DXY is able to snap above the 200-day Simple Moving Average (SMA) near 103.51, though could face headwinds from the PCE print later this Friday. If the DXY is unable to close off this Friday or this week for that matter, above the 200-day SMA, expect to see another downfall with a test at 103 for a break lower.

In case the DXY would be able to run further away from the 200-day SMA, more upside is in the tank. Look for 104.41 as the first resistance level on the upside, in the form of the 100-day SMA. If that gets breached as well, nothing will hold the DXY from heading to either 105.88 or 107.20 – the high of September.

With the repetition of another break above the 200-day SMA, yet again, a bull trap could get formed once prices would start sliding below the same moving average. This would see a long squeeze with US Dollar bulls being forced to start selling around 103.14 at the 55-day SMA. Once below it, the downturn is open towards 102.00.

[/s2If]

The NEHCAP currently runs the following trading systems for clients. They can be bought and run on your funds.

The system is trading live: LIVE ACCOUNT TRACKING
Contact Us: Contact
The HFT_FIX can be run free for 2 weeks on any broker with a ECN. Apply for a free trial
Join Our Telegram Group