After breaching the $100 level, DXY is still remaining strong today. Price action on major USD pairs has been considerably volatile since the Asian session last night and futures market this morning. Here are some USD pairs to watch this week as the world remains in uncertainty around geopolitical events and hawkish stances around monetary policy.
This pair continues to move higher as higher highs and lows are made the 1D timeframe. A couple levels of support could help keep price running higher should price touch down to the 0.93720s. Although the dollar looks overbought right now, it doesn't look like the momentum is ceasing. This strong move to the upside could continue throughout the week.
COT: Institutions are increasing both their long and short positions on the USD. However, the number of short contracts on the Franc have jumped from the previous week while the number of long contracts are shrinking.
EURUSD largely moves close to the performance of the US and UK equities markets. When stocks are bullish, so is EU and vice versa. Now, stocks have been down for the most part in regard to the rising interest rate, record inflation, higher bond yields, etc. investors are less attracted to the riskier Euro investment and flock to the safe haven currency.
Price looks like it might retrace from the lows and make a move upward. If so, the pair might go to the 1.09200s to test resistance. This could be a good short entry on the pair. If price fails to move higher, we can expect lower moves towards the 1.07330s.
COT suggests that price could move up this week due to the spike in long contracts from last Friday's report. However, price has yet to reflect that move.
This pair comes in a mixed bag as both gold and USD's performance have been mostly bullish in the past month. The conflict in eastern Europe is raising demand for the gold bullion while the inflation fears around the world is helping the USD.
On the 1D timeframe, price has come down to clean support on a rising trend line and the 50 DMA which could serve as a great long entry. However, a potential stronger USD throughout the week could cause a break in this level and take price to the 0.72860s.
Big money has upped their stakes in long contracts on both the precious metal and on the Aussie. So, we may in fact see another run to a higher high.
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