Weekly report DXY: fed meeting and trade tensions.
The market on august had made huge movement from upside to downside and viceversa. August end with the price reaching the upper part of the band, trying to reach a new high.
What to take on considerations:
In the fundamental side:
This month is gonna be fed meeting, coming up with no significant movement on the fundamental variables, an escalation in the US-China trade tension with China putting new tariffs to US goods, and an uncertain bond market, in the spread between the 2y and 10y treasury yield, it seems the 2y is tryng to surpass consistantly the 10y yield, a strong recession signal for the global economy, the market is just waiting for one bad fundamental new to start to move downside sharply and not in a choppy sense as we saw in august.
In the technical side:
The price can reach a new high level above the upper part of the channel, finding a signifance resistance(4,68) level according my marked fibo levels, as we can see the 3,618, 2,618 and the 1,618 were respected. The odds are still a sharply movement because the market is finding dificults to keep pushing higher
What to take on considerations:
In the fundamental side:
This month is gonna be fed meeting, coming up with no significant movement on the fundamental variables, an escalation in the US-China trade tension with China putting new tariffs to US goods, and an uncertain bond market, in the spread between the 2y and 10y treasury yield, it seems the 2y is tryng to surpass consistantly the 10y yield, a strong recession signal for the global economy, the market is just waiting for one bad fundamental new to start to move downside sharply and not in a choppy sense as we saw in august.
In the technical side:
The price can reach a new high level above the upper part of the channel, finding a signifance resistance(4,68) level according my marked fibo levels, as we can see the 3,618, 2,618 and the 1,618 were respected. The odds are still a sharply movement because the market is finding dificults to keep pushing higher
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