Bearish run kicked off on 22/07 and dropped in excess of 400+ pips; this run had ended on 7th August at which bulls made an attempt for a recovery- now there seems to be a pullback before the pair potentially shoots upwards. DXY cleared the 98 hurdle but seems to have come to resistance at FIB level.
Fundamentals: The pair remained on the defensive and traded with a negative bias for the second consecutive session on Monday amid persistent uncertainty over a possible resolution to the prolonged US-China trade disputes - especially after the US President Donald Trump's comments that he was not ready yet to make a trade deal with China.
Key events: Wednesday's important release of the latest FOMC meeting minutes, which will be followed by the Fed Chair Jerome Powell's scheduled speech at Jackson Hole Symposium on Friday.
In the meantime, the incoming trade-related headlines, along with the USD price dynamics and the broader market risk sentiment might play an important role in influencing the pair's momentum amid absent relevant market-moving US economic releases on the first day of a new trading week.
DXY:
Fundamentals: The pair remained on the defensive and traded with a negative bias for the second consecutive session on Monday amid persistent uncertainty over a possible resolution to the prolonged US-China trade disputes - especially after the US President Donald Trump's comments that he was not ready yet to make a trade deal with China.
Key events: Wednesday's important release of the latest FOMC meeting minutes, which will be followed by the Fed Chair Jerome Powell's scheduled speech at Jackson Hole Symposium on Friday.
In the meantime, the incoming trade-related headlines, along with the USD price dynamics and the broader market risk sentiment might play an important role in influencing the pair's momentum amid absent relevant market-moving US economic releases on the first day of a new trading week.
DXY: