US dollar index: bearish MACD crossover
The dollar index (
DXY) fell to 106.3 (-0.7% on the day), its lowest level since July 6th, as traders reduced expectations for a full percentage point rate rise by the Federal Reserve next week and risk appetite returned.
Fed interest rate futures now price in a 75-basis-point-hike in the next FOMC meeting with a 67% probability, according to the latest CME Group’s Fed watch tool.
From a technical standpoint, the dollar's momentum is waning after three consecutive sessions in the red, with the 14-day RSI sliding drastically from an overbought zone to considerably lower levels (55).
A bearish MACD crossover has formed on theDXY, which could pave the way for the continuation of the short-term bearish trend, but without affecting the dominant positive trend in 2022.
The breakdown of the next support at 106.1 (July 6’s lows) might lead to a test of 105.5 (June 15’s highs).
Idea written by Piero Cingari, forex and commodities analyst at Capital.com
DXY) fell to 106.3 (-0.7% on the day), its lowest level since July 6th, as traders reduced expectations for a full percentage point rate rise by the Federal Reserve next week and risk appetite returned.Fed interest rate futures now price in a 75-basis-point-hike in the next FOMC meeting with a 67% probability, according to the latest CME Group’s Fed watch tool.
From a technical standpoint, the dollar's momentum is waning after three consecutive sessions in the red, with the 14-day RSI sliding drastically from an overbought zone to considerably lower levels (55).
A bearish MACD crossover has formed on the
DXY, which could pave the way for the continuation of the short-term bearish trend, but without affecting the dominant positive trend in 2022.The breakdown of the next support at 106.1 (July 6’s lows) might lead to a test of 105.5 (June 15’s highs).
Idea written by Piero Cingari, forex and commodities analyst at Capital.com
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.