The USD Jumps as Wall Street Tumbles
Rowan Crosby • 1 min read
The story of the day has no doubt been the massive sell-off on Wall Street. While the USD held firm and cracked resistance.
Stocks sold hard and the move came late in the day. Selling was across the board but it was the tech stocks that lead the move lower with the NASDAQ down 4.5%.
There was no real catalyst for the selling other than sentiment fears as investors are still worried about the impact of China as well as rising interest rates.
The fears have spread to Asian trade this morning with the major indices all down and getting weaker. The magnitude isn’t as big as in the US, but it is still a red day all around.
The USD Outlook
The DXY tested the resistance level at 96.20 and so far we have held the break. If we pull back to 96.20 and the move holds and there are bidders stepping up, then that is a very bullish sign for me.
With that in mind, today’s US session will be big for the USD. If we hold then 97.00 now becomes a level in play and that is a very strong sign for the USD.
For now, 96.20 turns support with 95.50 the next key level down.