USDollar: It has gone too far from the support zone.CPI, FOMC
I begin with Technical Analysis first.
Look at on the chart:
- Strong resistance at Year high : 100.36
- Minor support at 98
- Strong support at support zone where has a convergent point of SMA50, SMA200,SMA100, EMA50
I especially watch the convergent point because it shapes a strong force ti attract price back to there.
USDollar is finding fuel to rally, traders want to drive it higher but lack of data and clues, they don't dare to push USDollar to year high.
Next week, the main focus are US CPI on Tuesday and FOMC Minutes on Wednesday.
I don't expect US CPI could beat the forecast due to negative Retail Sales last week, but I emphasize on FOMC Minutes, only few weeks ahead FED December Meeting where I strongly support a rate hike decision. Hence. I think FED will use this FOMC Minutes to prepare for next meeting.
I think FED should do something to end a decade of low rate and finish a financial year. : It's a long time for market to wait to see a difference.
If FED couldn't provide a clear path for USDollar, plus weak US CPI, market has no reason to drive greenback higher and a large correction is understandable.
In short, I think holding USDollar is still a good choice and we don't have much options on the table now.
Look at on the chart:
- Strong resistance at Year high : 100.36
- Minor support at 98
- Strong support at support zone where has a convergent point of SMA50, SMA200,SMA100, EMA50
I especially watch the convergent point because it shapes a strong force ti attract price back to there.
USDollar is finding fuel to rally, traders want to drive it higher but lack of data and clues, they don't dare to push USDollar to year high.
Next week, the main focus are US CPI on Tuesday and FOMC Minutes on Wednesday.
I don't expect US CPI could beat the forecast due to negative Retail Sales last week, but I emphasize on FOMC Minutes, only few weeks ahead FED December Meeting where I strongly support a rate hike decision. Hence. I think FED will use this FOMC Minutes to prepare for next meeting.
I think FED should do something to end a decade of low rate and finish a financial year. : It's a long time for market to wait to see a difference.
If FED couldn't provide a clear path for USDollar, plus weak US CPI, market has no reason to drive greenback higher and a large correction is understandable.
In short, I think holding USDollar is still a good choice and we don't have much options on the table now.
