Weekly outlook DXY: Coronavirus.
The price is entering through the channel with bulls daily candles. There are strong chance for the price to get deep in the channel in the coming week, let's see the variables:
In the fundamental side:
The coronavirus is spreading in a fast way, the OMS has no declare for an emergency situation yet, but if it does it can give strong movement of capital to safe haven investment such US treausry bond, and the yield on the benchmark 10-year is at the lowest level since Nov. 1., in line with the increase on expectation for a at least one interest rate rise in the year end. On wednesday is going to be FOMC Press Conference, is important to hear if they are following very close or not the coronavirus situation. In the same line, we have strong movement of gold to the upside, which can give more downside movement on the USDJPY pair, SO, IN OTHER WORDS, THE CORONAVIRUS CAN GIVE PRESSURE TO MOVEMENT TO THE DOWNSIDE FOR THE DOLLAR INDEX .
In the technical side:
The price is retouching and with significant bull canddles the drawn channel. We can expect a deeper movement to the channel, but looking for short movement on the dollar index price. The price had complete a 5 waves impulse pattern, so the upside movement is just the retracement structure, the two drawn areas are the possibles range of prices which the dollar index can start the new downside movement.
In the fundamental side:
The coronavirus is spreading in a fast way, the OMS has no declare for an emergency situation yet, but if it does it can give strong movement of capital to safe haven investment such US treausry bond, and the yield on the benchmark 10-year is at the lowest level since Nov. 1., in line with the increase on expectation for a at least one interest rate rise in the year end. On wednesday is going to be FOMC Press Conference, is important to hear if they are following very close or not the coronavirus situation. In the same line, we have strong movement of gold to the upside, which can give more downside movement on the USDJPY pair, SO, IN OTHER WORDS, THE CORONAVIRUS CAN GIVE PRESSURE TO MOVEMENT TO THE DOWNSIDE FOR THE DOLLAR INDEX .
In the technical side:
The price is retouching and with significant bull canddles the drawn channel. We can expect a deeper movement to the channel, but looking for short movement on the dollar index price. The price had complete a 5 waves impulse pattern, so the upside movement is just the retracement structure, the two drawn areas are the possibles range of prices which the dollar index can start the new downside movement.
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