The US Dollar goes nowhere and sticks to its pattern of the past two weeks and remains steady.

…
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 goes nowhere and sticks to its pattern of the past two weeks and remains steady.
• Traders gear up for the week’s first important data point with the US JOLTS release.
• The US Dollar Index is unable to break away from the 200-day SMA and remains stuck in its pattern.

The US Dollar (USD) is erasing all of its gains from Monday and drops back to the tight area where the US Dollar Index (DXY) is moving in since two weeks. The US Dollar has seen safe haven inflows quickly abate in the US trading session as the US Defense department was quick to downplay any rumours on military interventions or retaliation against Iran or Houthi rebels after three US military personnel got killed in a drone attack on a US base in Jordan. The US Dollar Index could get stuck in a range trade again towards Wednesday for the US Federal Reserve’s first rate decision of 2024.

On the economic front, a perfect appetiser before the main events on Wednesday and Friday comes in the form of the soon-to-be-released US JOLTS Job Openings. Although this is a backward looking index, with the upcoming print covering December, a lower-than-expected number could move the needle. A steep decline in the JOLTS number would point to less demand and less tightness in the job market, which in its turn means a slowdown in the economic activity, as companies would need to pay less to find the proper person for the job, which is again good for lower inflation. Lower inflation means lower rates and a weaker Dollar.

The US Dollar Index (DXY) had traders at the edge of their seats, seeing if it was finally possible that the US Dollar was able to shun from those two important moving averages: the 55-day (103.06) and the 200-day (103.53) Simple Moving Average (SMA). The safe-haven inflow quickly abated after the US Defense issued statements to confirm it would not seek confrontation in the region after three US military were killed in a drone strike on a US base in Jordan. Meanwhile US equities are holding their breath for big tech earnings this week, as neither a sell-off nor a rally is unfolding at the moment, and no clear risk on or risk off is in play.

In case the DXY is able to run further away from the 200-day SMA, more upside is in the tank. Look for 104.36 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 form once prices start sliding below the same moving average. This would see a long squeeze, with US Dollar bulls being forced to start selling around 103.10 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