US DOLLAR PRICE OUTLOOK: DXY INDEX EXTENDS DECLINE AS SPOT USD/JPY & USD/CAD EDGE LOWERUS Greenback weak point continues to p
US DOLLAR PRICE OUTLOOK: DXY INDEX EXTENDS DECLINE AS SPOT USD/JPY & USD/CAD EDGE LOWER
- US Greenback weak point continues to prevail with the DXY Index hovering round twelve-week lows
- USD/JPY value motion provides again current positive factors because the Japanese Yen levels a restoration try
- USD/CAD stays below stress however might discover assist close to the 1.34 value degree
It has been a whole massacre for the US Greenback and market bears over the past three weeks largely resulting from evaporating demand for safe-haven belongings. Heavy promoting stress skilled by the broader US Greenback has hammered the DXY Index to twelve-week lows with USD value action hemorrhaging as GBP/USD & AUD/USD soar, USD/CAD sinks. Sharp advances by spot EUR/USD additionally contributed vital technical harm to the US Greenback basket.
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DXY INDEX – US DOLLAR PRICE CHART: 4-HOUR TIME FRAME (08 MAY TO 08 JUN 2020)
Chart created by @RichDvorakFX with TradingView
Although US Greenback weak point underpins the sustained wave of upbeat market sentiment, urge for food for danger grows more and more bloated. On the similar time, as instructed by constructive divergence on the MACD indicator, US Greenback promoting has decelerated over the previous few buying and selling periods regardless of the clear bearish development.
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Additional, if the Bollinger Band begins to squeeze because the DXY Index makes an attempt to construct a base close to the 96.50-price degree, there could possibly be potential for the broader US Greenback to claw again current draw back. That stated, the 97.00-handle and the 9-period exponential transferring common stand out as obvious obstacles.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
Correspondingly, USD might maybe preserve a tough buying and selling vary as US Greenback bears develop exhausted after the most recent NFP report smashed expectations. Additionally, uncertainty surrounding the upcoming FOMC assembly this Wednesday, June 10 at 18:00 GMT might weigh on the path of the US Greenback and facilitate a ‘holding sample’ forward of this scheduled occasion danger.
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Choices-implied buying and selling ranges are calculated utilizing 1-standard deviation (i.e. 68% statistical chance value motion is contained inside the implied buying and selling vary over the required time-frame).
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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