Dollar - Engulfing Formation, Strong Rebound from Demand Zone
The dollar did poorly in the month of September but turned over during the last week after the Fed raised rate by 25 basis point as expected.
The Fed chairman has also adopted a very hawkish tone in regards to the economic growth and the pace of raising rate.
The dollar is also undervalued after dropping for close to a month and became oversold as it broke below the psychological level 94.
What we have right now is an engulfing candlestick formation in the weekly chart and the dollar rebounding off from the demand zone at 94.
The rebound is effective and the formation suggests that the price will continue to appreciate.
The monetary policies between the Fed and other major central banks are also seen widening, especially Japan, Australia, and New Zealand.
October should most likely be a dollar domination month by default given all the fundamental and technical factors presented in September.
The Fed chairman has also adopted a very hawkish tone in regards to the economic growth and the pace of raising rate.
The dollar is also undervalued after dropping for close to a month and became oversold as it broke below the psychological level 94.
What we have right now is an engulfing candlestick formation in the weekly chart and the dollar rebounding off from the demand zone at 94.
The rebound is effective and the formation suggests that the price will continue to appreciate.
The monetary policies between the Fed and other major central banks are also seen widening, especially Japan, Australia, and New Zealand.
October should most likely be a dollar domination month by default given all the fundamental and technical factors presented in September.