US Dollar latest bullish movement channel resistance stopped recently. The basket of US dollars is turning a crucial long-term milestone.
US dollar Key Considerations
Following yesterday’s increase, the US dollar basket is turning at a crucial long-term level.
DXY hits channel resistance as the weekend approaches and the debt ceiling dispute is still open.
The dollar (DXY) TAKES A BIG LONG-TERM SUPPORT TURN
The significant increase in the dollar from yesterday will have performed a lot of the heavy lifting. When we are to end the week in positive territory. The weekly graph highlights the significance of the 100.85 level/area. Which was relevant from March to May of 2020, once more in May 2022, and several times in 2023.
Given the scarcity of dollar bulls, it seems that dollar bears require the addition of an outside blow. Which can provide the required momentum for pushing the US dollar down. The unsolved debt limit problem, which may not be resolved until the end of May. And the return of regional bank turbulence since earlier this month is two of the storms looming over the markets at the present.
Technical Perspective
The trend for the US dollar has been moving laterally ever since breaking out of the falling channel to the market acceptance, price activity has been mostly restrained inside the new horizontal channel as markets assess the implications of a prospective interest rate halt.
Traders should keep an eye out for a breakout, or likely a fake breakout because of decreased volatility. Prices are now testing the top edge of the channel. Breakouts are frequently more likely to occur under turbulent market circumstances since it is simpler to gain pace. However, abrupt spikes in volatility can’t be excluded given the degree of ambiguity surrounding US regional financial institutions & the US debt ceiling.
