What a start to the year!
The DXY woke from its Christmas/New Year slumber with significant volatility.
With the price finding strong support at the 103.50 price area (failing to break lower) the DXY rebound strongly to the upside, to test the 105 price area.
This strong climb was despite there being no major news event today. Hence could only be attributed to the "reopening" of markets and price action of the other major currencies as they broke out of the respective consolidations.
The focus is now on the Fed Minutes (due on Thursday). Will the Feds slow down, as expected by the majority of the market? Or will the Feds continue along the current path?
The DXY could continue to trade between the range of 103.50 and 105 in the lead-up to the release of the meeting minutes. However, if the price breaks above the 105 price level, the next immediate key resistance level is at 105.60.
The DXY woke from its Christmas/New Year slumber with significant volatility.
With the price finding strong support at the 103.50 price area (failing to break lower) the DXY rebound strongly to the upside, to test the 105 price area.
This strong climb was despite there being no major news event today. Hence could only be attributed to the "reopening" of markets and price action of the other major currencies as they broke out of the respective consolidations.
The focus is now on the Fed Minutes (due on Thursday). Will the Feds slow down, as expected by the majority of the market? Or will the Feds continue along the current path?
The DXY could continue to trade between the range of 103.50 and 105 in the lead-up to the release of the meeting minutes. However, if the price breaks above the 105 price level, the next immediate key resistance level is at 105.60.
