In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for 26th March 2024.
Key Takeaways
- SNB Fires the First Shot: Swiss National Bank announced to cut its interest rate last week, hampering the performance of the pair US Dollar. The bank follows the footsteps of global central bank in easing their monetary policy, which could also influence the expectations of towards future policy from Federal Reserve.
- Be Alert to FOMC: In the coming week, we will be accompanied by a series of speech from members of the Federal Reserve. Previously, Atlanta Fed President Bostic reiterates his expectation to only one rate cut this year while Goolsbee commented to keep interest rates unchanged for 2024.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator threads towards overbought region, potentially forming a bearish signal in the short term. Nonetheless, it is advisable to wait for the signal to form before entering the market.
- Downtrend Line: Since last November, US dollar formed a bearish resistance at the upper threshold. Its price touched the line yesterday at around the previous high of 104.18. With multiple resistance from the upside, the US dollar is expected to face slowdown in bullish momentum with the possibility of a significant reversal.
4-hour Chart Analysis
- Stochastic Oscillator: The indicator formed a bearish signal at the overbought threshold, suggesting downside bias for short-term.
- Moving Average Support: However, it is worth noting that there will be two moving average line which would dampen the downside bias. Thus, in the occurrence of a breakout from either line, we will see its price to extend its current momentum thereafter.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 104.38,
- Bullish Scenario: Bullish sentiment prevails above 104.38, first target 104.50, second target 104.65;
- Bearish Outlook: In a bearish scenario below 104.38, first target 104.10, second target 103.92.
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.
