Greenback All Set For a Breakout
29 December 2021
US Dollar stays firm, DXY coils tighter indicating an imminent breakout.
In spite of having a mixed US data, the DXY bulls extended their recovery moves by 0.05%, taking the US Dollar Index to 96.20. This firm performance by the US Dollar prevented any upsurge of Gold prices above the $1,800 mark. The data to be awaited now are the US Trade data and Pending Home Sales. An indecisive Fed and worsening pandemic conditions also contributed to this continuing pressure on Gold price.
Experts are of the opinion that the US Dollar Index (DXY) is coiling up into a triangle on support and hence a breakout is imminent this week. Considering the uptrend, the breakout most likely would be towards the top side.
Crude oil prices are showing a bullish chart pattern despite staying pressured for the third day in a row at around $75.78. Oil bulls are attempting to regain their grip on the $76.00 mark, given their successful trading above 200-SMA.
AUD/USD is all set to bounce off of its daily lows of 0.7213 following China’s Commerce Ministry’s decision to raise the import quota on Australian wool. The Aussie market is showing enough positive sentiments, thanks to vaccine rollout picking up pace and the confident economic outlook of RBA.