Will the escalation of the Middle East tension boost the dollar
Macro theme:
- The dollar strengthened after Fed Chair Jerome Powell struck a more hawkish tone last week, scaling back traders' expectations of another 0.50% rate cut at the next meeting.
- The safe-haven demand following the possibility of Middle East escalation boosted the dollar.
- The US Aug JOLTS data showed 329,000 more jobs, indicating a more robust labor market than anticipated.
Technical theme:
- From the 4-hour chart, DXY broke its Wedge pattern and closed above both EMAs with the golden cross. This indicates a potential recovery from its previous sideways-down trend.
- If DXY breaks above 101.33, the index may strengthen to retest 101.80 resistance confluences with its descending trendline.
- On the contrary, DXY may retest 100.90-101.00 before upward movement.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The dollar strengthened after Fed Chair Jerome Powell struck a more hawkish tone last week, scaling back traders' expectations of another 0.50% rate cut at the next meeting.
- The safe-haven demand following the possibility of Middle East escalation boosted the dollar.
- The US Aug JOLTS data showed 329,000 more jobs, indicating a more robust labor market than anticipated.
Technical theme:
- From the 4-hour chart, DXY broke its Wedge pattern and closed above both EMAs with the golden cross. This indicates a potential recovery from its previous sideways-down trend.
- If DXY breaks above 101.33, the index may strengthen to retest 101.80 resistance confluences with its descending trendline.
- On the contrary, DXY may retest 100.90-101.00 before upward movement.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.