Add a comment
September U.S. Dollar Index futures are trading lower this morning after a disappointing U.S. Retail Sales report. Although the report is not enough to sway the Fed from reducing monetary stimulus by the end of the month, investors still are not sure of the amount of the stimulus cut. Currently, the Fed is buying $85 billion per month in government securities. After this report and the weaker-than-expected U.S. Non-Farm Payrolls report from earlier in the month, investors are pricing in a possible reduction of between $10 and $20 billion per month. Both reports show that the U.S. economy may have slowed in the third quarter.
Daily September U.S. Dollar IndexTechnically, the dollar is still in an uptrend, but the downside momentum is nearing the last main bottom at 81.135. A trade through this level will turn the main trend to down on the daily chart.
The failure to hold the Fibonacci level at 81.54 has put the market in a weak position. The next downside target is an uptrending Gann angle at 81.33. On the upside, resistance is at 81.78. This angle forms a resistance cluster with a 50% level at 81.77.
No comments:
Post a Comment