US DOLLAR OUTLOOK: NZD/USD PRICE ACTION UNDER PRESSURE AMID RISK-OFF MARKET SENTIMENTThe US Greenback strengthened steadily throu
US DOLLAR OUTLOOK: NZD/USD PRICE ACTION UNDER PRESSURE AMID RISK-OFF MARKET SENTIMENT
The US Greenback strengthened steadily throughout main foreign money pairs throughout Tuesday’s buying and selling session. US Greenback shopping for strain was most pronounced relative to sentiment-linked NZD/USD and AUD/USD, which fell -2.3% and -1.6% respectively. The chance-off tone expressed by market value motion exacerbated underlying Kiwi weak spot as New Zealand outlined new measures to reign in its rampant housing market and lifted strain off the RBNZ to show extra hawkish. EUR/USD and GBP/USD have been dragged decrease in related vogue as US Greenback bulls flexed their muscle groups. Even USD/CAD ended up advancing 65-pips regardless of information that the BoC is shifting towards tapering coverage.
| Change in | Longs | Shorts | OI |
| Day by day | 44% | -7% | 13% |
| Weekly | 42% | -20% | 2% |
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (21 OCT 2020 TO 23 MAR 2021)
Chart by @RichDvorakFX created utilizing TradingView
On steadiness, the broader DXY Index gained 0.64% for the session. This appeared largely fueled by resurfacing threat aversion and demand for safe-haven currencies just like the US Greenback. With US Greenback bulls seemingly again in charge of path after a short-lived pullback from month-to-date highs, it seems just like the DXY Index might be eyeing technical resistance posed by its 200-day easy shifting common. Eclipsing this barrier would possibly carry to focus the 94.00-handle underpinning early November highs. Alternatively, if US Greenback bears try to make a push, the DXY Index would possibly discover technical assist supplied by its 20-day easy shifting common.
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USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
US Greenback implied volatility readings are heating up throughout the board of key FX pairs. EUR/USD in a single day implied volatility of 8.1%, for instance, is above its 20-day common studying of 6.5% and ranks within the prime 76th percentile of readings taken during the last 12-months. Upcoming occasion threat detailed on the DailyFX Financial Calendar highlights the discharge of month-to-month PMI knowledge. Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen can be again within the highlight for day two of their congressional testimonies as effectively.
Preserve Studying – EUR/USD Worth Outlook: Euro to Battle as US Financial system Outperforms
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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