US dollar begins the week on a strong note after snapping its weekly winning run.
The US Dollar (USD) will not be able to take advantage of the US public holiday on Monday. Despite Columbus Day, the US dollar is surging higher after gapping up on Sunday night on news of Hamas launching. A big offensive against Israel in a manner not seen in decades. With large inflows into safe havens, all bets are off.
Traders flee as Hamas launched its worst strike on Israel in two decades over the weekend.
With an empty economic calendar, anticipate the Israel-Gaza conflict to dictate Monday’s actions.Moreover conflict. Several headlines from international leaders and groups like OPEC+ are driving safe havens higher. Israel is prepared for retribution while declaring that Iran is behind the strikes, with Western officials yet to confirm or endorse these conclusions, demonstrating the sensitivity of the situation and the region’s interest in Crude Oil supplies.
US Dollar Technical Outlook
The US Dollar is remorseless in its winning streak after a squeeze on Friday ended its 12-week winning streak.
The US public holiday closes US bond markets, but if they were open, it would have spurred even greater safe-haven trade into the Greenback.
Furthermore Expect the US Dollar Index to continue on its upward trajectory. to re-establish its weekly winning run.
The US Dollar Index began around 106.29, with the Relative Strength Index (RSI) dropping slightly after the DXY’s weekly winning run ended on Friday.
Moreover on the upside, 107.19 is critical to see whether the DXY can close above that level on a daily basis. If this is the case, the next level to watch is 109.30.
On the downside, the recent resistance level of 105.88 should be seen as first support. Nonetheless, this barrier has just recently been breached to the upside, so it is unlikely to be robust. Instead, keep an eye out for 105.12 to maintain the DXY above 105.00.
