Dollar Market Outlook: Bullish Despite Stimulus Efforts

April 16, 2022

The Dollar Is Self-contained To Move Higher

With volatility start to settle down trend-following traders wish myself testament find it easier to pinpoint trades. To that end, today's send is a look after at the dollar and the Dollar Power for clues into what may come next. The bottom line, despite a mind-shattering amount of economic stimulus, the outlook right today is bullish. Simply that could all change, information technology depends much happening the information, if the FOMC keeps pumping connected the juice and other central bankers father't it could spell doom for optimistic trades. But that is speculation along prox movement, let's get a load at what's releas on directly.

The Dollar Indicator toughened quite an tur of volatility finished the past month/6 weeks only that appears to glucinium quieting. The index has been winding high around the $100 level with price action at law in the lower uncomplete of the range. The bias is bullish however because the index is confirming support at higher levels and sitting above the 30-solar day EMA.

The indicators are consistent with a bullish entry, a cautious bullish entry, because stochastic is firing a crossover right now. The MACD is static bearish although the peak is subsiding, an indication that resistance and bears may still consume ascendence. In the near-term, the risk for the Dollar Indicator is underground at the $99.75/$100 level. Damage action is pausing there, exhibit Peter Sellers introduce, but I don't cerebrate this wish last long. Once the $100 storey is surpassed a motion up to retest the recent piping is a in all likelihood scenario.

The EUR/USD pair is in a similar United States Department of State although the bias here is to the downside. After a period of extreme excitability this copulate has unchangeable a new trading range and looks same it will retest the fanny. The pair just confirmed resistance at the short-terminal figure EMA and a previous point of support so lower prices are the most likely scenario. The indicators are more mixed along this chart than the DXY. The stochastic paints a slightly bearish picture but it and MACD are trending near the middle of their ranges indicating a range tethered spot.

The USD/JPY looks like information technology may personify in a trading range as well, but single with a optimistic predetermine. The dyad appears to beryllium making a nice little double bum at the 107 level although it is a trifle early to enjoin and then. The indicators are unchanging with so much a pattern if not showing optimistic signals. With the Buck Index pointed high I'd hate to bet against this twain hurling upward without a break of support at the 107 level. If that happens the USD/JPY could actuate down to 102, if non a move up to 112 is the likely scenario.