MARKET RECAP
The U.S. greenback, as measured by the DXY index, retreated on Wednesday, dragged decrease by falling charges within the wake of disappointing financial numbers. U.S. Treasury yields have begun to retrench in current days, as softer-than-expected macro-related statistics have diminished the probability of further financial tightening by the Federal Reserve.
Earlier this week, U.S. job openings and client confidence introduced forth detrimental surprises. At the moment, non-public payroll figures (ADP) for August adopted the sample of lackluster information, clocking in at 177,000 versus a forecast of 195,000. The second estimate of Q2 GDP additionally fell wanting predictions, recording a progress price of two.1% annualized, in distinction to the projected 2.4%.
US ECONOMIC DATA
Supply: DailyFX Financial Information
Though the outlook is fluid and topic to vary, rising indicators that the financial system is slowing reasonably than reaccelerating could pressure the Fed to undertake a extra cautious stance at upcoming conferences, deterring officers from pursuing additional coverage firming. This might create a bearish setting for the U.S. greenback, however merchants ought to stay attentive to the August NFP report and the ISM survey to validate this evaluation.
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US DOLLAR (DXY) TECHNICAL ANALYSIS
Specializing in technical evaluation, the U.S. greenback rallied from mid-July by means of late August to multi-month highs, however didn’t clear trendline resistance close to 104.50. As soon as the DXY index reached this threshold, sellers regained management of the market, triggering a reasonable pullback in subsequent classes, with costs threatening to interrupt beneath the 200-day easy shifting common at 103.00 the time of writing.
By way of potential eventualities, if costs handle to breach the 103.00 ground, the bears could launch an assault on the psychological 102.00 stage, adopted by 100.80. On the flip aspect, if the US greenback regains poise and turns increased, preliminary resistance seems at 103.50, and 104.25 thereafter.
US DOLLAR TECHNICAL CHART
US Greenback (DXY) Chart Created Utilizing TradingView
NASDAQ 100 TECHNICAL ANALYSIS
After some indecision on the market open on Wednesday, the Nasdaq 100 in the end leaned in the direction of positive factors in afternoon buying and selling, rising for the fourth consecutive session to the doorstep of a significant technical resistance positioned close to 15,500. Whereas clearing this barrier may show difficult, a clear and decisive breakout might considerably bolster bullish momentum, paving the best way for a retest of the 2023 highs round 16,000.
Conversely, if upward impetus fades and sellers return, the tech index might slip beneath its 50-day shifting common, creating favorable circumstances for a hunch towards trendline help at 14,850. Though the Nasdaq 100 could set up a base on this area on a pullback, a breakdown has the potential to amplify downward stress, probably resulting in a decline towards the 14,600 mark.
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NASDAQ 100 TECHNICAL CHART
Nasdaq 100 Futures Chart Created Utilizing TradingView
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