BUZZ-COMMENT-USD bullish as a downside break could not be sustained
Jan 23 (Reuters) - As the U.S. dollar could not sustain its break below a key Fibonacci level, that could lead to gains in the days and weeks ahead for a currency that has been directionless recently.
The dollar traded in narrow ranges against major peers on Thursday, as it continued to struggle for direction in the absence of concrete announcements on tariffs from U.S. President Donald Trump.
The USD index, which tracks the greenback against a basket of six major currencies, on Wednesday briefly dropped below the 107.805 Fibo, a 23.6% retrace of the 100.150 to 110.170 (September to January). That adds to the potential for bigger gains beyond Jan. 17's 109.42 high.
The failure to register a daily close under the 107.805 Fibo is likely a bear trap, set when a market breaks below a technical level but subsequently reverses, is usually a bullish sign. However if there is a daily close under the 107.805 Fibo that would shift the overall bias back to the downside.
For more click on FXBUZ
Related Articles
[Reuters Analysis] Fed lowers rates by a quarter of a point; Powell says was a risk management cut
NEW YORK, Sept 17 (Reuters) - The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year, as policymakers responded to concerns about weakness in the job market in a move that won support from
Why the September Fed Meeting Feels So Strange? The Answer Lies with Miran, Cook and Trump
TradingKey - Beyond analyzing whether the updated dot plot after the Fed’s rate decision reflects a dovish or hawkish tilt, investors are increasingly curious about what will become of the Federal Reserve amid political interference, personnel changes, and potential institutional shifts. The Wall
September Global Central Bank Divergence: How Will U.S. Stocks and Forex Markets Move?
TradingKey - Despite the divergence in monetary policies among major global central banks in September (with the Federal Reserve cutting rates while the European Central Bank, Bank of England, and Bank of Japan maintain steady rates), we expect the policy directions of the Fed, ECB, and BoE to...
What Is Worldcoin? Why Did WLD Surge Suddenly, and What’s Next?
Worldcoin is evolving from a “hype token” into a foundational layer for global identity. Its fusion of biometrics, blockchain, and financial inclusion has earned growing recognition from users and institutions. If it can overcome technical hurdles, launch real-world payment use cases, and stabilize
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
