The USD is Breaking Down
Rowan Crosby • 1 min read
The USD has been relatively range bound of recent times and it appears that now the bears are slowly wrestling back control.
The USD is getting pulled around by a few different forces at the moment. The safe-haven play has been probably holding it up to some extent of recent times, given the market volatility.
Now that we have had a bit of a bounce in equities then buying has largely eased off.
At the same time, we are also seeing some changing fundamentals with the FOMC looking to slow down their rate hikes. This will also largely weigh on the USD in the short-term as expectations had been for three more hikes in 2019.
Now, some if not all are in doubt. However, the real hope for USD bulls is that equities weaken. If that happens, which there is every chance that they will, then perhaps we might see some safe-haven buying.
The USD Outlook
The DXY remains just below the resistance level at 96.00 which was previously the major support holding it up.
Below us, we have 95.00 and 93.80 as my key targets should the selling continue.
There is every chance of a retest of 96.00, particularly if equities sell -off so I’m first and foremost looking for that type of move.