The U.S. dollar has come under selling pressure since the beginning of the month and is now near oversold territory, which could allow for a recovery, says Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note. “The selloff in the dollar could soon bottom out given the Fed’s cautious tone faced with the significant decline in the U.S. long-term bond yields,” she says. The minutes of the Federal Reserve’s latest monetary policy meeting showed policymakers were unwilling to conclude they were done raising interest rates but they would “proceed carefully” with future decisions. The DXY dollar index edges up 0.1% to 103.661.
Intraday Analysis | 1H Time Frame |
At the moment we keep our focus on the short term and on the Intraday chart we have seen the area reach around 103 with the failure of the harmonic structure. Having said that, we do not rule out some corrective (bullish) structure like ABC Pattern or it will develop a harmonic as before. From a technical point of view, the trend is bearish on intraday chart so we do not exclude a bearish consolidation if the technical rebound does not appear, in this case we should wait for EURUSD to reach 1.1040 before seeing an interesting corrective structure on Dollar Index.