DXY

A rebound off trend support keeps the focus on a breakout of the weekly range heading into NFPs on Friday. Battle lines drawn on the DXY short-term technical charts.

EURUSD, Dow Forecast: The EURUSD maintains its rebound above the key 1.0333 level, while the Dow pauses near record highs above 45,000, and the DXY holds steady at critical support ahead of Friday's NFP.

While it is well documented that the USD tends to suffer in December, the dynamics of Trump at the helm alongside another important FOMC meeting could give seasonality a run for its money. But regardless of which way the dollar travels this month, there is a clear intra-month pattern that is worth factoring in to the equation.

GBP/USD held steady on Friday but is on track for its largest weekly rise since mid-September as the US dollar gave back some of its Trump victory gains.

USDJPY Forecast: Friday's rise in Tokyo CPI from 1.8% to 2.2% drove USDJPY below the critical 150 level. A pivotal week of US economic data ahead, including ISM PMIs and Non-Farm Payrolls, is set to heighten volatility risks for the pair.

EURUSD and Nasdaq Outlook: As the DXY edges closer to breaking 2023 highs, bearish risks loom large for EURUSD. Meanwhile, NVDIA earnings are boosting long-term bullish potential for the Nasdaq following the Trump rally.

US Dollar surged 6.9% off the yearly low with the Trump rally fueling a breakout of the 2023 consolidation pattern. Battle lines drawn on the weekly technical chart.

USDJPY, Silver Forecast: The US Dollar’s rally has pushed the yen to levels increasing Bank of Japan intervention risks and pressured silver to retest a critical yearly trendline, raising caution over potential further upward movements in the dollar.

Nasdaq, EURUSD Analysis: the DXY lost its steam following the Fed’s 25 bps rate cut, coming after the stretched momentum of the Election results. This shift is raising questions about the continuation of the bull trend for both Nasdaq and EURUSD.

US Dollar surged nearly 5.3% off the yearly low with the Trump election rally failing at major resistance. Battle lines drawn on the weekly technical chart into the Fed.

US Dollar rally reversed off trend resistance yesterday leaving the DXY vulnerable into the close of the week. Battle lines drawn on the USD short-term technical charts.

US Dollar surged more than 4.4% off the yearly lows with a four-week rally now approaching trend resistance. Battle lines drawn on the DXY weekly technical chart.

Whether it reflects US economic exceptionalism reducing the need for large-scale rate cuts from the Federal Reserve or improved prospects for Donald Trump winning the US Presidential election, or a combination of both, it’s obvious the US interest rate outlook is dictating direction across FX markets. With short-dated Treasury futures teetering above a key technical level, what happens next could be highly influential.

EURUSD Analysis: Following a double top formation at the 1.120 resistance, EURUSD reached the target, pressured by a strong dollar and dovish ECB. Will the decline continue?

EURUSD Forecast: In addition to the strength of the dollar between haven factors and moderated expectations of monetary easing, dovish expectations surrounding the ECB’s upcoming monetary policy decision are putting additional pressures on the Euro.

USDJPY, Silver Forecast: As the U.S. dollar strengthens and uncertainty persists around monetary policies, elections, and geopolitical tensions, both USDJPY and Silver are proceeding through the third week of October on a positive note.

The USD extended its bullish trend this week but perhaps the larger focal point was Gold, defending 2600 and continuing the rally. For next week, USD/JPY resistance and EUR/USD pullbacks are in focus.