The Dollar Slams Into Resistance, Weekly Forecast

March 11, 2022

Contents ▾

The Buck Stops Here
India Poised For Growth
The Pound Regains Traction
Yen Poised To Move Big

The Buck Chicago Here

The U.S. dollar made a stellar mover higher over the past hardly a weeks but that go out has come to an end. Trade hopes, U.S. economic dominance, and a supportive FOMC were not enough to break the DXY out of its trading ramble. The index is now showing resistance at the top of the range, near the $97.50 level, where is has been halted many times in the past. The weaker than expected labor information last week is matchless reason for the halt, the fact all major world currencies are weakening on with the global economy is some other.

Dollar traders are going to have an event-filled calendar week. The system calendar is full and includes CPI, PPI, manufacturing, retail sales, and housing data. CPI and PPI are going to be the most important, inflation is what drives the FOMC to change rates. Inflation has been subsiding, weaker than likely reads could pull down support from under the dollar in a hurry.

Republic of India Balanced For Growth

The Indian Nepalese rupee has been gaining forte versus the dollar over the past few months and is set to test a major support line. The pair has been pressured lower past improvement in the state-run lending facilities and hopes a round of newfangled elections will solve political issues. The USD/INR is indicated depress and likely to smasher 69.50 versus the dollar at least. A move below that level would beryllium bullish for the Rupee and could take the pair to 68.00 or 67.00

The Pound Regains Adhesive friction

The Pound sterling has been on uncertain footing versus the dollar but may be restoration its adhesive friction. The pair is supported aside hope the UK won't let a hard-Brexit happen. The U.K. parliament is about to vote on the crucial May Brexit Deal, if they don't pass it all bets are off. For now, support is at the 1.3000 level and looks strong, a move up to 1.3200 and 1.3300 is expected.

Yen Poised To Move Mountainous

The Yen is poised to move big but which was is supposed. The USD/JPY has been trending higher o'er the past tense few months and looks similar IT could move higher again. Information technology is testing support at the 30 day moving mediocre where a resile is very likely to signifier. The question is if the dollar can sustain its strength versus the yen or if it volition succumb to global pressures and break support. A come through the EMA would be bearish and could accept the pair down to 110.00 or 108.00.