A very warm welcome to all my visitors and MT5 members.
Hello, dear members of the Mt5 forum. I hope you will be fine. Today is a fine day on Wednesday, and we have another opportunity of earning from the forex market. In this trading journal, we will discuss the DXY movement and today's fundamental data of the forex market, which are waiting to release in the current US trading session.
General Discussion about USD INDEX influence, price Action, and its impact
Taking a look at the DXY price action, the USD index is trading above the 96.03 markets in an inconclusive trend so far, having a positive momentum, while the current momentum has been navigating the following range of resistance which is located at 96.55 territories. Due to the recent jerk in the US yields, the price has visited a short-term reversal from the 2021 hike. It is pretty noticeable that after the reappointment of Chief Powell, the US cash market once again began to extra transactions after the appointment of Powell as a Spoke person of Fed. It is quite noticeable that after the reappointment of Chief Powell, the US cash market once again began to extra transactions after the appointment of Powell as a Spoke person of Fed. On the other hand, due to the higher yields, the index continuously deriving strengthened after the anticipated take-off by the Federal reserve statement regarding the elevated inflation.
Technical outlook of USDX
From the technical perspective, the price of the DXY rally has been advancing with the gaining momentum power of 0.03% with the aim of 96.50. The breakdown of the 96.50 barrier, which is the Nov 23rd high, would lead the rally of the potential positive bias towards the resistance obstacle level of 97.00, which would open a door for the 97.30 expectedly. On the flip side, the downside barrier at 95.85 would be the initial support zone in failure of buyers and activation of bearish bias. The breakout of 95.85 would extend the bearish trend towards the low of 95.25, followed by 94.85 would be the ultimate target of the sellers.
First, take a look over the upcoming week's major news events.
Fundamentally, today we have recorded some high-impact news on the economic calendar in the attached chart below. Some are released in the Asian session, and some are waiting to release in the US session, Such as Crude oil inventory, Core PCE Price Index m/m, and Revised UoM Consumer Sentiment. These are the most impost major data awaiting release for the further price action of the released pairs, especially the DXY, which could be massively impacted by the released data.
- USD-->Revised UoM Consumer Sentiment
- USD-->Core PCE Price Index m/m
- USD-->Crude Oil Inventories
- USD-->FOMC Meeting Minutes
Overlook of my close trade
I recently have closed my gold trade in sell with the marginal profit of around 1.78$, because of released data from the US. After that, I will decide to enter again in gold to take a good profit by the potential reversal. If the price pulls back then the first aim is to surpass the critical resistance barrier of 1892-95. Where I will decide to enter with the take profit of 1810-12.
Today we have oil inventory and I hope the impact of the Biden investigation about the oil higher price and the US and China manipulating strategy will forcibly decrease the value of the Oil. In that case, we can see some downtrend reversal again towards the 75 to 74 support mark.