US DOLLAR STRENGTH ACCELERATING USD/CAD BREAKOUT, AUD/USD PLUNGEUS Greenback bulls staged a forceful transfer throughout Thursday’s buying and sel
US DOLLAR STRENGTH ACCELERATING USD/CAD BREAKOUT, AUD/USD PLUNGE
US Greenback bulls staged a forceful transfer throughout Thursday’s buying and selling session. The Dollar strengthened in opposition to nearly all main FX friends such because the Euro, Sterling, Aussie, and Loonie. Broad-based US Greenback features helped the DXY Index invalidate key resistance and soar to a contemporary yearly excessive above the 93.50-price stage.
USD/CAD and AUD/USD have mirrored US Greenback power particularly lately with mounting world development considerations weighing negatively on commodity currencies and fueling safe-haven demand. The truth is, each the Canadian Greenback and Australian Greenback now commerce at their weakest ranges relative to the US Greenback since February 2021 and November 2020, respectively. Intensifying Fed taper speak has possible helped propel the US Greenback broadly greater as effectively, although uncertainty surrounding the timing and scope of tapering stays.
DXY – US DOLLAR INDEX PRICE CHART: WEEKLY TIME FRAME (APR 2019 TO AUG 2021)
Chart by @RichDvorakFX created utilizing TradingView
The DXY Index closing above technical resistance on the 93.35-price stage this week may open up the door to additional features. As such, US Greenback bulls may need their sights set on the 94.65-price stage highlighted on the weekly chart above.
That is an space of confluence underpinned by the March 2020 swing low, September 2020 swing excessive, and 38.2% Fibonacci retracement of the DXY Index’s pandemic buying and selling vary. Failure to keep up altitude at present ranges into week-end has potential to see US Greenback bears fade current power and seek for assist across the 92.00-handle.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
USD/CAD in a single day implied volatility has crept greater owing to the most recent breakout above the 1.2800-price stage. Extra volatility for this pair is anticipated on Friday in mild of occasion danger detailed on the financial calendar. Particularly, Canadian retail gross sales and housing value index are scheduled for launch at 12:30 GMT whereas Dallas Fed President Robert Kaplan is slated to provide a speech at 15:00 GMT. USD/CAD in a single day implied volatility of 8.6% is above its 20-day common studying of 6.3% and ranks within the prime 91st percentile of measurements taken during the last 12-months.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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