U.S. Dollar Gains Back Traction
The U.S. dollar gained back traction as inflation haunts markets. The U.S. PCE index came in at 4.7 percent last Friday against 4.3 percent anticipated and 4.6 percent previously. Furthermore, and noteworthy in terms of the dollar’s strength, treasury yields hold the highest level in 15 years.
After reaching a yearly high at 1.1033, the common currency weakened against the greenback, heading towards an important support level. The support zone now may range from 1.05 to 1.0440. On the upside, the price area between 1.0750 and 1.08 could serve as a short-term resistance. Breakouts above or below these price areas will be watched closely.
The cable still finds itself within the current sideways range between 1.2450 and 1.18. A significant break below 1.18 is considered a bearish breakout with a next lower target being seen at around 1.15.
The DAX has been trading sideways in February. We see a potential support area around 15100/15000, the ascending trendline of the index’ latest upward movement. As long as this trendline remains intact, bulls can hope for a next leg up towards 15500.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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