The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
FOMC sends US dollar packing, yet a bounce could be in sight
Yesterday’s Federal Open Market Committee minutes had a profoundly negative effect upon the US dollar, with the dollar basket breaking below the $96.92 support to create a new low. However, there are signs that we could have a recovery of sorts today, with the creation of a new intraday high.
This short-term bullish sentiment holds unless we break below the 27 July low of $96.52. Ultimately the $96.92 level is going to be crucial, with a possible test as new resistance.
Should we see a break back above $96.92 and $97.32, then it would look bullish again for the medium-term, but for now I am just looking for a short-term bounce and then will see how it responds to key resistance.