• Latest
  • Trending
  • All
Dollar lacks upside momentum due to lower Treasury yields

Dollar bulls back in the game

January 10, 2022 00:30
Equities struggle amid economic and China-related concerns

Equities struggle amid economic and China-related concerns

December 29, 2022 08:55
Dollar lacks upside momentum due to lower Treasury yields

Currencies stuck in ranges as New Year holiday looms

December 28, 2022 07:01
Stocks gain, dollar eases ahead of job market data

Dollar pressured by positive risk sentiment in thin markets

December 27, 2022 04:50
Dollar lacks upside momentum due to lower Treasury yields

Dollar tries to shrug off the pressure

December 26, 2022 05:13
Investors spooked by strong US data

Investors spooked by strong US data

December 23, 2022 11:55
Dollar lacks upside momentum due to lower Treasury yields

Dollar back under pressure after short-lived relief

December 22, 2022 05:17
Risk demand reemerges cautiously, but caution remains in place

Risk demand reemerges cautiously, but caution remains in place

December 21, 2022 08:49
Dollar lacks upside momentum due to lower Treasury yields

US dollar resists selling pressure

December 20, 2022 10:44
Market sentiment dented by recession fears

Market sentiment dented by recession fears

December 19, 2022 02:53
Dollar lacks upside momentum due to lower Treasury yields

Greenback stays on the defensive nearly across the board

November 16, 2022 05:34
Investor sentiment improves, but gains limited

Investor sentiment improves, but gains limited

November 15, 2022 05:46
Dollar lacks upside momentum due to lower Treasury yields

Dollar licks wounds after plunge

November 14, 2022 05:05
  • Terms & Сonditions
  • Contact
Friday, January 27, 2023
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Equities struggle amid economic and China-related concerns

    Equities struggle amid economic and China-related concerns

    Stocks gain, dollar eases ahead of job market data

    Dollar pressured by positive risk sentiment in thin markets

    Investors spooked by strong US data

    Investors spooked by strong US data

    Risk demand reemerges cautiously, but caution remains in place

    Risk demand reemerges cautiously, but caution remains in place

    Market sentiment dented by recession fears

    Market sentiment dented by recession fears

    Investor sentiment improves, but gains limited

    Investor sentiment improves, but gains limited

    Risk sentiment keeps deteriorating, dollar climbs

    Stocks celebrate US inflation, dollar slumps

    Virus, US-China tensions hit global markets

    Market sentiment turns cautious amid events in the US

    Investors look indecisive ahead of another volatile week

    Investors look indecisive ahead of another volatile week

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Equities struggle amid economic and China-related concerns

    Equities struggle amid economic and China-related concerns

    Stocks gain, dollar eases ahead of job market data

    Dollar pressured by positive risk sentiment in thin markets

    Investors spooked by strong US data

    Investors spooked by strong US data

    Risk demand reemerges cautiously, but caution remains in place

    Risk demand reemerges cautiously, but caution remains in place

    Market sentiment dented by recession fears

    Market sentiment dented by recession fears

    Investor sentiment improves, but gains limited

    Investor sentiment improves, but gains limited

    Risk sentiment keeps deteriorating, dollar climbs

    Stocks celebrate US inflation, dollar slumps

    Virus, US-China tensions hit global markets

    Market sentiment turns cautious amid events in the US

    Investors look indecisive ahead of another volatile week

    Investors look indecisive ahead of another volatile week

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Dollar bulls back in the game

Dollar bulls back in the game

by Joseph Deen
January 10, 2022 00:30
in Technical analysis
0
Dollar lacks upside momentum due to lower Treasury yields

Powell and economic data could add to a more bullish tone surrounding the greenback in the coming days

EURUSD

The dollar turned positive on Monday after a sell-off seen on Friday in reaction to the disappointing December Nonfarm Payrolls reading. The USD index, which dropped to 95.70 zone, is back near the 96.00 figure, adding nearly 0.20% on the day, as the 10-year US Treasury bond yield stays around the highest level in nearly two years on rising Fed rate hike bets. Against this backdrop, EURUSD slipped from the 1.1360 area and was holding just above the 1.1320 immediate support during the European hours. As the common currency is back under pressure, it looks like the pair could lose the 1.1300 handle in the short term, especially as traders expect Fed’s Powell to express a hawkish tone on Tuesday. Furthermore, the US CPI report is widely expected to add to the dollar’s bullishness on Wednesday, suggesting the euro will stay on the defensive in the coming days.

GBPUSD

The cable retains a bullish bias on Monday while also staying slightly above the 100-DMA, currently at 1.3550. Earlier in the day, the pair briefly derailed the 1.3600 figure for the first time in two months but came off fresh multi-week peaks in recent trading as the dollar bulls have reentered the game. On the four-hour charts, the pound is holding above the ascending 20-SMA while the RSI hasn’t entered the overbought territory just yet, suggesting there is room for fresh bullish attempts in the near term. However, it looks like GBPUSD would struggle to make a decisive break above 1.3600 in the near term as the dollar stays elevated while risk sentiment looks mixed at this point. In a wider picture, however, the technical outlook has improved after the prices exceeded the 20-week SMA, currently at 1.3550. 

USDJPY

USDJPY keeps retreating gradually from five-year highs seen last week around 116.35. On Friday, the dollar extended the downside correction to 115.55 to finish the week around the lower end of the range. Today, the prices struggle to regain the upside bias while holding barely above the 115.50 area. Should the overall dollar demand pick up again anytime soon, the pair would try to regain the 116.00 level, but it looks like the greenback would fail to confirm a decisive recovery above this hurdle on a daily closing basis. On the hourly timeframes, the technical picture looks more bearish, with the pair now trading below the 20-SMA while the RSI is nearing the oversold territory. Should the downside pressure intensify anytime soon, USDJPY would retarget the 115.30 support zone, followed by the 115.00 figure.

XAUUSD

Gold prices dipped to mid-December lows around $1,780 on Friday before attracting the buying pressure and the eventual rebound. However, the XAUUSD pair finished the week with deep losses while also staying below the $1,800 psychological level. On Monday, the precious metal extends the recovery, flirting with the $1,800 level where the 20- and 200-DMAs arrive. It looks like the bullion would need an extra driver to make a decisive break above this immediate barrier in the near term, with downside risks persisting as the dollar is back on the offensive after a sell-off witnessed on Friday. The XAUUSD pair needs to overcome the mentioned moving averages in order to retarget last week’s highs at around $1,830. Of note, this zone capped the bullish potential in December as well, suggesting the barrier could be too strong for the gold bulls as long as the greenback stays afloat. 

BTCUSD 

The BTCUSD pair came off last week’s lows seen around $40,500 but stays weak and vulnerable to further losses. The leading cryptocurrency by market capitalization is treading water just below the $42,000 figure on Monday. Struggling for direction these days. On the upside, the coin needs to make a decisive break above the $43,000 initial target in order to bring the market focus back to the 20-DMA, currently at $46,600. As long as the prices stay below this moving average, bearish risks continue to persist in the short term. On the downside, the mentioned lows followed by the $40,000 psychological level stay in the market focus. Should the digital currency fail to hold above this critical support zone, the technical picture would deteriorate further.  

Tags: BTCUSDDollarEURUSDGBPUSDGoldUSDUSDJPYXAUUSD
Share2Tweet1
ADVERTISEMENT
Joseph Deen

Joseph Deen

Joseph is a technical analysis expert. A graduate of NYU, Joseph has a master's degree in mathematics. On FWNews, Joseph provides exchange rates reviews and forecasts.

Related Posts

Equities struggle amid economic and China-related concerns
Fundamental analysis

Equities struggle amid economic and China-related concerns

December 29, 2022 08:55
16
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Currencies stuck in ranges as New Year holiday looms

December 28, 2022 07:01
12
Stocks gain, dollar eases ahead of job market data
Fundamental analysis

Dollar pressured by positive risk sentiment in thin markets

December 27, 2022 04:50
12
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar tries to shrug off the pressure

December 26, 2022 05:13
12
Investors spooked by strong US data
Fundamental analysis

Investors spooked by strong US data

December 23, 2022 11:55
11
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar back under pressure after short-lived relief

December 22, 2022 05:17
16

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Russian ruble licks wounds at all-time lows

Russian ruble licks wounds at all-time lows

February 24, 2022 07:56
17
Dollar lacks upside momentum due to lower Treasury yields

Dollar set to trim losses further

July 29, 2022 06:37
17

Canada’s financial system is resilient amid global uncertainty, Senior Deputy Governor Wilkins says

November 19, 2019 17:22
10

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
118
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2022 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2022 FWNews