US DOLLAR STRENGTH ACCELERATES USD / CAD TERMINATION, AUD / USD PLUNGE
The US dollar bulls took a strong step during Thursday’s trading session. Greenback was strengthened by virtually all major FX peers, for example Euro, Sterling, Aussie and Loonie. The broad-based US dollar earnings helped the DXY index wipe out key resistance and rise to a year-high high above the 93.50 price level.
USD/CAD and AUD/ USD has reflected the strength of the US dollar, especially recently, with growing global growth problems that negatively affect commodity currencies and increase safe place demand. In fact, both the Canadian dollar and the Australian dollar are now trading at the weakest level against the US dollar since February 2021 and November 2020. Strengthening Fed narrowing story has also likely helped to raise the US dollar broadly higher, although uncertainty about the timing and extent of the depreciation remains.
DXY – US DOLLAR INDEX PRICE CARD: WEEKLY FRAME (APRIL 2019 – AUGUST 2021)
The DXY index, which closes above the technical barrier at 93.35 this week, could open the door to further gains. As such, US dollar bulls may target the weekly schedule above at the 94.65 price level highlighted.
This is the junction based on the low swing of March 2020, the speed of September 2020 and 38.2% Fibonacci Search for the DXY Index Pandemic Trading Range again. If you leave the current level at the current level until the end of the week, the bears of the US dollar may start to fade in recent strength and look for support around the 92.00 handle.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RADGES (NIGHT)
USD / CAD overnight expected volatility has risen higher due to the latest rupture, which exceeded the price level of 1.2800. More volatility is expected for this pair on Friday, given the risk of the event, which is described in detail economic calendar. Specifically, the Canadian Retail and Housing Price Index is scheduled to release at 12.30 GMT, while Dallas Central Bank President Robert Kaplan will deliver the speech at 15.00 GMT. USD / CAD Overnight Expected Volatility 8.6% exceeds its 20-day average of 6.3% and is among the top 91st percentile of measurements made during the last 12 months.
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