In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for July 12 2024.
Key Takeaways
- Downward inflation in the US: Yesterday, the dollar index closed the day around 0.52% lower at 104.46, buoyed by bearish CPI data which cements the course for rate cut sooner than later.
- Rate cut expectations increased: Bets towards two rate cuts from Federal Reserve increased exponentially following the release of CPI report. Speculations were rampant that a third rate cut may be initiated if data warrants for such need. In terms of timing, market participants is expecting for rate cut during September, November and December policy meeting.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: Both signal lines fail to provide any solid signal, suggesting a possible halt in its recent downtrend. We may expect the dollar index to stage a rebound if bullish momentum reigns.
- Support and resistance: The index fell through both 33-MA (red) and 65-MA (black) lines while currently hovers around the nearest support level. Evident from its recent price action, the lack of downward push may help the index to recover its losses if a rebound succeeds.
H1 Chart Insights
- Stochastic Oscillator: The momentum slows down and flattens, suggesting possibility of a halt in its upside bias. It is worth noting that the index may enters consolidation phase until a clear signal has been formed.
- Support and resistance: The index forms bearish engulfing pattern at around 104, suggesting possibility of continuation in bearish bias. If the index closes below the nearest support level, it will reinforce the possibility of downward extension in the near-term.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 104.80,
- Bullish Scenario: Bullish sentiment prevails above 104.80, first target 105.00, second target 105.20;
- Bearish Outlook: In a bearish scenario below 104.80, first target 104.25, second target 104.08.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
