US Dollar Index holds at 104.00, despite minor selling pressure.
The US Dollar (USD) made little noise at the start of the week on Monday. With the United Kingdom closed for a bank holiday. The normally low volume at the start of the week was much lower, with no significant changes to report. With the United Kingdom back online and fresh economic data on the horizon. Trade volumes are anticipated to return to more typical levels.
The datafront is beginning to play a role. On Tuesday. There will be some secondary data points. The JOLTS Job Openings data will create the most noise since a fall in job openings might indicate a contraction in labor market demand. Which implies salaries could begin to flatline or even reverse. Dampening inflationary pressures. The July figure is expected to fall from 9.582 million to 9.465 million.
US Dollar Technical analysis
Since mid-July, the US Dollar has been on a strong uptrend, reaching new highs last week. With the Jackson Hole event behind us, the US Dollar rise may begin to decelerate slightly. Some profit taking might begin. This week, many US jobs-related data sets are likely to be released. Furthermore, a danger on market sentiment might lead to decreased interest for the US dollar, which is seen as a safe-haven asset.
On the plus side, the May 31 high of 104.69 serves as the level to beat. Once that level is broken and consolidated, expect a surge to 105.00, with 105.10 (the March 15 high) being a prime contender for a double top. If the dollar continues to rise, look for a challenge at 105.88, the March 8 top in 2023.
On the downside, many floors are expected to prevent the DXY from falling sharply. The first is the large value of 104.00.
Despite the fact that viewingThe present decrease does not appear to be significant enough to last. Look for the 200-day Simple Moving Average (SMA) at 103.14 instead.
That is a far better option for catching any profit-taking pressure and re-entering. If it does not hold, the safety net of 102.33 comes into play, which holds both the 55-day and 100-day SMAs.
