The US Dollar dips on Monday as selling pressure continues.

…
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 dips on Monday as selling pressure continues.
• Market sentiment turns nervous on an eventful week in the US economic calendar. .
• The US Dollar Index slides below 104.00 and could fall further on the back of data later this week.

The US Dollar (USD) is inching lower on Monday, extending Friday’s declines. Two main drivers for the Greenback to keep in mind this Monday: First, the landslide victory for former US President Donald Trump over Nikki Haley’s home state South Carolina, which puts Trump very close to secure the required amount of delegates for a Presidential bid. Second, the vast amount of key economic data points that are set to be released throughout this week, with second reading of the US Gross Domestic Product on Wednesday and the Personal Consumption Expenditures (PCE) Price Index on Thursday as the main drivers that could tip the market in any direction.

The week is off to a quiet start, with a very light calendar Still, the tone could get set already with the New Home Sales data. A further decline, together with the decline seen in Building Permits and Housing Starts last week, could confirm that the housing market is coming under pressure from this elevated interest-rate regime.

The US Dollar Index (DXY) is facing some downside pressure on Monday. Expect a very nervous build-up to the main event on Thursday, the Personal Consumption Expenditures (PCE) Price Index release. The uptick in both the Consumer Price Index (CPI) and the Producer Price Index (PPI) numbers over the past two weeks is lifting market expectations for the PCE index, which means any number undershooting expectations might trigger a substantial leg lower in the DXY.

To the upside, the 100-day Simple Moving Average (SMA) near 104.05 is the first level to watch as it is a support that has been turned into a resistance. Should the US Dollar be able to cross 104.60, 105.12 is the next key level to keep an eye on. One step beyond there comes 105.88, the high from November 2023. Ultimately, 107.20 – the high of 2023 – could even come back into scope, but that would be when markets reprice the timing of a Fed rate cut again, possibly delaying it to the last quarter of 2024.

Looking down, the 200-day Simple Moving Average at 103.73 was broken on Thursday and should see more US Dollar bears flock in to trade the break. The 200-day SMA should not let go that easily, so a small retreat back to that level could be more than granted. Ultimately, it will lose its force with the ongoing selling pressure and could fall to 103.16, the55-day SMA.

[/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