Wed, Oct 05, 2022 @ 14:24 GMT
HomeContributorsTechnical AnalysisUSD Breaking Down Towards 103/104

USD Breaking Down Towards 103/104

I hope you had a nice weekend and that you are ready on more volatile markets with plenty of important data on this week’s schedule. However, August is known as one of the slowest months of the year, but this time can be different due to CBs hiking policy decisions. We have RBA and BoE decisions and then important employment from Cadena and New Zealand and US. Technically speaking, we see USD in bearish mode, with room for more weakness as finally stocks recovers and even finished the week at the highs. It looks like risk-on mode is back after the US economy is officially in a technical recession after GDP shrank in both the first and second quarters. However, Fed does not see a recession as jobs are still strong. From an Elliott wave perspective, we see DXY coming down from a consolidation (yellow box), so USD can get weaker across the board.

Now when USD is breaking down, keep an eye on AUDUSD for more upside after pullback. Temporary resistance is at 0.7070, and support at 0.6900.

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