The USD Cracks Resistance Right on Cue
Rowan Crosby • 1 min read
The USD has been lurking just below key resistance and right on cue we got the breakout. The move came on the back of talk from US President Trump’s about auto tariffs.
The USD was generally stronger across the board, but the news hurt US equities. The DOW was down early but fought back. While the SPX finished the day positive in what is actually quite a strong sign for stock markets.
Ranges in crude oil continue to be relatively wide. Price dipped lower, before finishing strongly as we are now just on the $52.00 mark.
It could be argued that we are actually forming a bit of a base in Bitcoin as well. The selling has slowed and price can’t really crack through the $3,600 level. While I wouldn’t be buying right now, there is certainly a bit of a pause in the action.
The USD Outlook
The DXY is still just above the resistance level turned support at 97.00 after the nice little breakout that I have been talking about this week.
We are now coming into some big news days ahead and the USD will have a bit of work to do to hang on to the gains.
Particularly with GDP and the FOMC. For now, 97.00 becomes support and we look to 97.70-80 to provide resistance.
S2 is at 96.00-20.