Weekly outlook DXY: Powell testifies: Coronavirus vs Economy
The price respect the marked diagonal line with red color, the price did break it for then retouching it to keep pushing higher, lets see how far the upside movement can be developed:
In the fundamental side:
The better than expected jobs reports and manufacturing data realesed last week made the price to move with strong canddle to the upside, giving pressures to the bond market to the upside in the yields, as we can see from the US10Y which one jump from 1,50 to almost 1,70 last week, in other words, the market last week reduce their expectation for more cuts rates from the Fed. For the week ahead there is the Powell testifie, so is important to watch out his tone related to what does matter right now for the Fed, if the advance of the Coronavirus or the data from the US Economy, in the same line, and once finished the Powell Testifie, on thursday there is going to be the CPI data result from US which one for sure is going to give to the price strong movement.
In the technical side:
THe price is in his ABC retracement process, which one can move deep inside form the previous impulse wave, meanwhile the price does not surpass the high level from the last impulse structure, we can still talking about in term of this new structure such as a retracement process. The drawn range areas, are extendeds fibo levels from this new structure, which ones can give us new opportunity to look for short setups.
In the fundamental side:
The better than expected jobs reports and manufacturing data realesed last week made the price to move with strong canddle to the upside, giving pressures to the bond market to the upside in the yields, as we can see from the US10Y which one jump from 1,50 to almost 1,70 last week, in other words, the market last week reduce their expectation for more cuts rates from the Fed. For the week ahead there is the Powell testifie, so is important to watch out his tone related to what does matter right now for the Fed, if the advance of the Coronavirus or the data from the US Economy, in the same line, and once finished the Powell Testifie, on thursday there is going to be the CPI data result from US which one for sure is going to give to the price strong movement.
In the technical side:
THe price is in his ABC retracement process, which one can move deep inside form the previous impulse wave, meanwhile the price does not surpass the high level from the last impulse structure, we can still talking about in term of this new structure such as a retracement process. The drawn range areas, are extendeds fibo levels from this new structure, which ones can give us new opportunity to look for short setups.
