In the context of technical analysis, DXY (US Dollar Index) has recently breached a crucial resistance level at 103.800, signaling a potential buying opportunity. However, it's currently in a corrective phase, retracing towards this breakout area. This technical setup suggests a strategic entry point for traders eyeing bullish positions on the dollar.
Adding a fundamental layer to this analysis, today's Non-Farm Payrolls (NFP) data has significantly impacted market sentiment. The release of NFP figures showing an impressive 353,000 jobs added in January, far surpassing the expected 180,000, has injected notable strength into the US dollar. Moreover, the Federal Reserve's cautionary stance, particularly the indication that there will likely be no interest rate cuts in March, further supports the bullish outlook for the dollar. These fundamental factors, combined with the technical breakout, reinforce the potential buying opportunity on DXY around the 103.800 zone.
This confluence of technical and fundamental indicators suggests a compelling case for monitoring DXY closely in the coming week, with a keen eye on potential buying opportunities as it retraces towards the breakout area. Traders should remain vigilant and capitalize on this strategic entry point, considering the robust NFP data and the Fed's cautious stance on monetary policy.
Maybe DXY can grow to 104 points, and then start to decline to the support area, but I also think, the price, after reaching this area, can continue to fall lower, what u think?
@LegionQ8, with the current fundamentals DXY is super bullish, i don't believe in shapes and lines as much as i believe in fundamentals. the only case for dxy to fall is in case of an escalation of banking crisis.