After FED hawkish statement USD is turning upward and gaining momentum

USD index

The Dollar Index has bounced from its low at 96.10, its lowest level since last November, to gain back to 97.20. Resistance area extends from it to 97.75 and we can expect a kind of minor corrective decline ahead. Technical indicators indicates bullish divergence in USD index chart.

EURUSD

A bearish divergence is evident in the technical picture. A break of May low near $1.1110 would open the door to a deep pullback, triggering stops of speculators who had the largest net long euro position in last years.

Gold

Gold approached a strong support at 1250-1255. The corrective upward pullback from this level is looming - we do not think the market will break this level immediately. The next support is located at $ 1225- $ 1230. Given all the fundamental and news background if the nearest support 1250-1255 get breached, we expect that the downward impulse will eventually be limited to the level of 1230, where medium-term demand will return to the market.

This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.