The dollar climbed as expected as euro continues to weaken amid ECB and dollar continues to climb with some better than expected economic data.
The dollar is about to complete the 2nd bullish wave after breaking out from a consolidation which has completed 2 waves of retracement.
The price is expected to climb a little further and will meet with strong resistance at a 4-month high around 98.4.
The key focus for this week is none other than the FOMC where a rate cut of 25 basis point is widely expected.
The expectation of a rate cut has already priced in and the market is more focused on the tonation of the Fed in regards to the economic health to look for clues for whether the Fed will continue cut rate further later this year.
Another important thing to take note is whether the Fed will unexpectedly cut by 50 basis point instead of just 25 basis point.
In this week, the dollar is expected to consolidating upwards before the FOMC.
If the FOMC is dovish with its economic condition and/or decides to cut by 50 basis point, the dollar will face a strong resistance near 98.4 and fall towards 97.5 and then 96.7.
But if the FOMC shows little clue for another cut in this year and choose to only cut by 25 basis point, the dollar may either break through the 4-month high near 98.4 or maybe it will face some resistance first and pull back towards the demand zone at 97.5 before climbing further,
I will be posting another post on trading the FOMC separately.
The dollar is about to complete the 2nd bullish wave after breaking out from a consolidation which has completed 2 waves of retracement.
The price is expected to climb a little further and will meet with strong resistance at a 4-month high around 98.4.
The key focus for this week is none other than the FOMC where a rate cut of 25 basis point is widely expected.
The expectation of a rate cut has already priced in and the market is more focused on the tonation of the Fed in regards to the economic health to look for clues for whether the Fed will continue cut rate further later this year.
Another important thing to take note is whether the Fed will unexpectedly cut by 50 basis point instead of just 25 basis point.
In this week, the dollar is expected to consolidating upwards before the FOMC.
If the FOMC is dovish with its economic condition and/or decides to cut by 50 basis point, the dollar will face a strong resistance near 98.4 and fall towards 97.5 and then 96.7.
But if the FOMC shows little clue for another cut in this year and choose to only cut by 25 basis point, the dollar may either break through the 4-month high near 98.4 or maybe it will face some resistance first and pull back towards the demand zone at 97.5 before climbing further,
I will be posting another post on trading the FOMC separately.
