US DOLLAR PRICE OUTLOOK: USD BULLS DEFENDING KEY TECHNICAL SUPPORT LEVELUS Greenback volatility accelerated on Monday because the
US DOLLAR PRICE OUTLOOK: USD BULLS DEFENDING KEY TECHNICAL SUPPORT LEVEL
- US Greenback volatility accelerated on Monday because the Buck staged an enormous intraday reversal
- DXY Index recoiled larger as US Greenback bulls preserve defending a key technical assist stage
- USD value motion would possibly proceed to fluctuate inside the confines of its broader buying and selling vary
The US Greenback inked an enormous intraday reversal throughout Monday’s buying and selling session. USD value motion declined a notable -0.4% as measured by the broad-based US Greenback Index early on, however following the discharge of a formidable US PMI report, the Buck subsequently staged an eye-popping rally to complete the day up about 0.2% on steadiness. The inflow of US Greenback energy additionally seems to coincide with a rebound off a crucial technical assist stage as bulls proceed to defend the 92.00-handle on the DXY Index.
DXY – US DOLLAR INDEX PRICE CHART: MONTHLY TIME FRAME (FEB 2011 TO NOV 2020)
Chart by @RichDvorakFX created utilizing TradingView
An enormous-picture take a look at the US Greenback Index utilizing month-to-month candlesticks brings to focus a longstanding bullish trendline prolonged by way of the Might 2011 and Might 2014 swing lows. USD promoting strain because the March 2020 swing excessive stays a prevalent theme, however US Greenback bulls have stood their floor and saved the Buck largely afloat round this key technical zone.
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Buying and selling Foreign exchange Information: The Technique
Along with its decrease Bollinger Band, this potential space of buoyancy can be highlighted by the 38.2% Fibonacci retracement of its Might 2011 to January 2017 buying and selling vary. A clear break under this assist stage across the 92.00-mark would possibly open the door to extra US Greenback draw back – maybe towards the 2018 swing lows. Nonetheless, it appears extra seemingly that the US Greenback Index might proceed alongside its turbulent drift sideways with the 50-day easy transferring common close to the 93.30-price standing out as a possible stage of resistance.
USD PRICE OUTLOOK: US DOLLAR IMPLIED VOLATILITY TRADING RANGES (1-WEEK)
Be taught Extra – What’s Implied Volatility & Why Ought to Merchants Care?
GBP/USD is predicted to be probably the most lively main forex pair this week in response to US Greenback implied volatility readings simply taken. This seemingly follows rising prospects for UK officers to announce a long-awaited Brexit commerce deal. Maintaining a tally of the path of EUR/USD and USD/JPY all through the week is also prudent seeing that their respective 1-week implied strikes of 87-pips and 78-pips might underestimate realized volatility – significantly contemplating the acceleration in US Greenback volatility on Monday.
| Change in | Longs | Shorts | OI |
| Each day | 27% | -11% | -1% |
| Weekly | -1% | -10% | -7% |
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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