US dollar price falls, with Scandinavian currencies leading the way higher.
The US Dollar (USD) takes a larger step back towards the US opening bell.With Scandinavian currencies like the Norwegian Krone and Swedish Krona are the greatest victors.Against the Greenback. The current stance is no coincidence. As traders are approaching one of the most important times of the year in the financial calendar.
The annual Jackson Hole Symposium is set to take place on On Friday. US Federal Reserve Chairman Jerome Powell will deliver a speech.That might be a game changer for the Greenback’s performance in the fourth quarter of 2023.
As traders prepare for Jackson Hole and keep their powder dry in the meantime, a very tranquil Monday begins. On the economic data front. The Chicago Fed National Activity Index for July could make some minor ripples for the US Dollar. Meanwhile, some attention is focused on China. As markets were disappointed by the Peoples Bank of China (PBOC)’s overnight rate drop. Equities fell at the start of the week as a result of the policy change.
Technical Analysis
The US The US Dollar Index (DXY) broke below significant downside support. In the shape of the 200-day Simple Moving Average (SMA) at 103.20 on Monday. Adding to its losses. The US dollar falls slightly on Monday as traders strive to conserve firepower for the big event on Friday. For the most part, expect any dramatic swings or breakdowns to be headline-driven and short-lived this week.
On the plus side, the target price is 104.00. The high of Friday at 103.68 is critical, and a daily closing above it is required for the DXY to eke out extra monthly gains. If the US Dollar’s surge continues till the end of the year, May’s top of 104.70 could become a reality once more.
On the downside, many floors are expected to prevent the DXY from falling sharply. The first is the 200-day Simple Moving Average (SMA) at 103.20, which was briefly broken on Thursday. When the price falls below 103.00, some room for additional decline opens up. However, the 55-day and 100-day SMAs are both waiting for any dropping knives around 102.34.
