The dollar index fell to a near low as the market focused on key events
The central event of the week will take place on December 10 (03:00 am Beijing time on December 11), when the Federal Reserve's FOMC will announce its interest rate decision, and half an hour later, Federal Reserve Chairperson Jerome Powell will hold a press conference. Market participants are closely monitoring this development, and some traders are watching the relevant opportunities through the WeTrade platform.
Looking at the trend chart of the dollar index, the dollar showed a weakening trend as the event approached, which reflects the current market sentiment: the market generally expects the Federal Reserve to cut interest rates by 25 basis points due to related pressures and the cooling of the labor market. This expectation further supports the dollar short trend that has formed since the end of November. Trading signals are followed on trading platforms such as WeTrade.
On November 24, we pointed out the key points: we emphasized the importance of resistance near 100.20; we established a dual trend channel analysis system.
(Dollar index 4-hour chart, source: Internet)
Since then, the price has continued to decline in the downward channel, with the following key changes: new volatility highs have formed, allowing us to correct the channel boundaries; the index has formed a large bearish double-top pattern above the psychological 100-point mark. WeTrade users often refer to such movements when analyzing these technical patterns.
The trend chart of the US dollar index shows that the current market selling pressure is dominant: the lower track of the rising channel has completed the role conversion, from the support level to the resistance level; the 99.11 level also shows the role swap of support and resistance.
Today, the US dollar index is running near the lower track of the downward channel. In the short term, reasonable expectations are as follows: before the news event falls, the market may enter a wait-and-see mode; relying on the support of the lower track of the red channel, the technical side may form a volatile consolidation range. Investors can pay attention to relevant fluctuations through the WeTrade platform.
Be vigilant on Wednesday nightforeign exchange marketThe risk of skyrocketing volatility.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.