The Dollar/Dollar Forecast; The Bulls Are Back In Charge

Nov 8, 2022

Dual Bottom Is Confirmed, A Retest Of Highs Is Close at hand

The FOMC have done their work. The committed said it won't raise operating theater lower rates without a significant change in ostentation and that is underpinning dollar force. The Dollar Index moved high over the hold out week and didn't just confirm the Double Prat I've been observance, IT blew right past the baseline and is on traverse to continue moving higher. In every case, the indicators I commonly follow are bullish. Price action is forming a series of White Soldiers, not actually invulnerable ones only solid nonetheless. The MACD momentum shows market strength is at a quaternity-month high and getting stronger, as does the stochastic. The single worry is that stochastic is already interior "overbought" territorial dominion so at that place some risk resistance will cap gains.

The start target for electric resistance is near $98.50. This layer may provide strong resistance to terms movement but I don't reckon strong plenty to cap gains for long. Next week we are looking for reports on CPI and PPI, along with retail sales. Positive surprises there will tilt the balance of sentiment toward rising FOMC rates and that will aid the bulls advance. A break above $98.50 will likely move up to $99.25 and and so $99.70.

The Canadian Dollar is losing prime to its southern neighbour. The USD/CAD is itinerant higher and aided in today's action by washy childbed from Canada. Today's act breaks higher up another point of electrical resistance and opens the door to a much larger advance. The succeeding immunity target is close to 1.3350, a gain of 118 pips. The indicators are both optimistic and on the rise, neither are in overbought territory just yet. This go down has room to run.

The Aussi Dollar is likewise looking week versus its common-hardbacked cousin. The AUD/USD is poised to make a big decline after the pair confirmed resistance at the 0.6900 level. The candles and indicator suggest a importantly bearish move is about to unfold, a move that may take this duo down to 0.6700. The only matter standing in the way are support targets at 0.68115 and 0.6750. The risk here, and in the USD/CAD, is that U.S. system data will move into weaker than expected. Consumer and producer stage puffiness has been rattling tame over the past few quarters so there is little expected value the Book of Numbers will show a "remarkable" modification as the FOMC is looking for. Regardless, the near-term outlook is bullish. Continue the trades small, safe, covered by stops and possess those take-profit targets waiting in case bearish signals form near resistance or confirm.