2023-08-22 • Updated
Emerging market countries, including the BRICS bloc, are expressing frustration with the US dollar's dominance in the global financial system. While there have been discussions about creating alternative currencies to challenge the dollar's dominance, no concrete proposals have emerged. Instead, these countries are considering expanding trade using their own currencies to reduce reliance on the dollar. Critics from emerging economies are especially worried about the US using the dollar's influence for imposing financial sanctions and the destabilizing impact of dollar fluctuations on their economies, including increased costs for repaying dollar-denominated loans and purchasing imported goods priced in dollars. Let’s see how the technical factors align.
The bullish move on the US Dollar seems to be finally wearing off, albeit slowly. At the moment, price appears to have broken out of a wedge pattern on the 4-Hour timeframe, which could suggest the onset of a bearish move that could slide as low as the 50% of the Fibonacci retracement. Other confluences on this include:
Analyst’s Expectations:
Direction: Bearish
Target: 102.621
Invalidation: 103.771
EURUSD has reached a demand zone that overlaps with trendline support and could be well considered within the area of the 50 and 100-period moving averages. The demand zone can also be considered to have occurred within the range of the 88% of the Fibonacci retracement zone. These confluences point towards the likelihood of a bullish impulse.
Analyst’s Expectations:
Direction: Bullish
Target: 1.11655
Invalidation: 1.08350
Price action on GBPUSD has now completed a rejection from the demand zone and seems very clearly poised for a bullish movement. As deduced from the charts, we can see price has made a move away from the 88% of the Fibonacci retracement (which is a key level), and coupled with the confluences from the trendline support, the demand zone, the 100-period moving average support, and the bullish array of the moving averages.
Analyst’s Expectations:
Direction: Bullish
Target: 1.28760
Invalidation: 1.25872
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...
Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...
Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
