AUD/USD PRICE OUTLOOK: US DOLLAR OSCILLATES AMID REFLATION TRADE HEADWINDSUS Greenback completed Monday’s buying and selling sess
AUD/USD PRICE OUTLOOK: US DOLLAR OSCILLATES AMID REFLATION TRADE HEADWINDS
- US Greenback completed Monday’s buying and selling session roughly flat as bears look to fade latest power
- DXY Index seems prone to give up good points with the market embracing the reflation commerce once more
- AUD/USD value motion whipsawed larger to probe pattern resistance forward of confidence information
- Study extra concerning the fundamentals of technical evaluation or implied volatility buying and selling methods
The US Greenback whipsawed decrease on Monday as early upside fizzled out for the second consecutive buying and selling session. An inflow of US Greenback power was seen on the APAC and European opens, however bears look to be fading the latest rebound. The broader DXY Index pivoted again beneath the 91.00-price degree after erasing its 0.25% intraday acquire after which some.
AUD/USD value motion gained 26-pips whereas USD/CAD slid 16-pips. This rally throughout commodity currencies highlights a contemporary breath of life to the reflation commerce theme, which is might current appreciable headwinds to the safe-haven US Greenback.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (09 OCT 2020 TO 08 FEB 2021)
Chart by @RichDvorakFX created utilizing TradingView
US Greenback bears seem to have nullified the inverse head-and-shoulder sample by reversing the topside breakout above the 91.10-price degree. This brings to focus potential for continuation decrease and poses the query whether or not or not it’s time to fade the DXY Index rally. US Greenback demand has already began to ebb as urged by the wilting relative power index, however for now, the short-term bullish pattern seems to stay intact. That stated, it’s potential we see an acceleration in US Greenback weak point if the 20-day and 50-day easy shifting averages fail stymie promoting stress.
Beneficial by Wealthy Dvorak
Get Your Free Prime Buying and selling Alternatives Forecast
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
AUD/USD value motion may gain advantage particularly on the again of the revived reflation commerce and renewed US Greenback weak point. The newest bounce has pushed the Aussie to short-term pattern resistance underscoring its stretch of decrease highs over the previous few weeks. Overcoming this technical impediment might assist the reflation commerce theme acquire traction and correspond with US Greenback promoting stress extra broadly.
| Change in | Longs | Shorts | OI |
| Day by day | 13% | 13% | 13% |
| Weekly | -14% | 14% | 1% |
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception