The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Attention: risk sentiment is off
During the European trading session, both the US and the UK yield curves inverted. This is the sign of the recession. It pulled the risk-weighted assets down and increased the demand for the Japanese yen.
- USD/JPY has tested the ground below the 50-period SMA on H4. The pair has touched the support at 105.8. If this level is broken, the next support will lie at 105.52. From the upside, the resistance levels at 106.62 and 106.74 are in focus.
- USD/CAD has been among gainers. The pair has touched the 1.33 level, which lies close to the crossover of 100- and 200- period SMA on the daily chart. If this level is broken, the next resistance will be placed at 1.3338. If the Canadian dollar strengthens, bears will try to pull it back towards the 50-period SMA at the 1.3196 level.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.