The USD Resistance Holding For Now
Rowan Crosby • 1 min read
There was a bit of relief in the air as the USD found some buying along with US equities. However, the Greenback still can’t quite crack resistance.
Stocks ended the day higher, however, there were a few worries after hours, with concerns around Apple likely to weigh on the broader market going forward.
Oil also rebounded on the back of a huge sell-off in recent times. Not before tagging the $50 handle and forcing producers to start asking some questions around the current level of profitability.
Bitcoin also tanked once again after trying to test the $4,000 level and failing. This is a worrying sign as there are really no buyers around at the moment and I can’t see many new ones stepping up.
The USD Outlook
The DXY is still just below the resistance level of 97.00, with support at 96.00-20.
This type of price action, where we see a consolidation under resistance, is often a prime candidate for a breakout.
So I am expecting a move higher in the coming days. We have some big numbers on the way with consumer confidence today.
They, of course, can throw a spanner in the works – particularly GDP and the FOMC minutes. So be cautious.