DXY: Navigating USD's Turbulent Descent Towards Crucial Support
Ladies and gentlemen, this is your captain speaking. Welcome aboard the Investroy flight. We are currently approaching a crucial support level of 102 on the DXY, which may bring about a change in the prevailing market conditions. This shift is expected to occur following the liquidity increase post July 4th.
Now, let's talk about the recent performance of the USD. Just like a stalled plane, the USD has been descending without another rate hike in sight. We anticipate this downward trend to continue until the end of the week. However, as we approach the touchdown at 102 (expected late this week or early next week), the FED will be faced with an important decision that will determine our next direction.
From this critical level, we have two possible outcomes. We could either break through this level and continue our descent towards the early May lows, or we might experience a bounce back towards the early June highs, just like a plane pulling up to regain altitude. The exact course of action remains uncertain at this stage, but we expect to gain more clarity as we approach the release of the Non-Farm Payrolls (NFP) report next Friday. Rest assured, we will keep you all updated on any developments.
In either scenario, it's worth noting that the retest can be entered safely, just like a skilled pilot making a precise landing. So buckle up, traders, and prepare for potential turbulence as we navigate through these market conditions. Thank you for choosing to fly with us, and we wish you a successful trading journey.
Now, let's talk about the recent performance of the USD. Just like a stalled plane, the USD has been descending without another rate hike in sight. We anticipate this downward trend to continue until the end of the week. However, as we approach the touchdown at 102 (expected late this week or early next week), the FED will be faced with an important decision that will determine our next direction.
From this critical level, we have two possible outcomes. We could either break through this level and continue our descent towards the early May lows, or we might experience a bounce back towards the early June highs, just like a plane pulling up to regain altitude. The exact course of action remains uncertain at this stage, but we expect to gain more clarity as we approach the release of the Non-Farm Payrolls (NFP) report next Friday. Rest assured, we will keep you all updated on any developments.
In either scenario, it's worth noting that the retest can be entered safely, just like a skilled pilot making a precise landing. So buckle up, traders, and prepare for potential turbulence as we navigate through these market conditions. Thank you for choosing to fly with us, and we wish you a successful trading journey.