Currency technical analysis – the US dollar rebounded from its lowest level in nine months

Technical analysis of currencies – The US dollar managed to rise against many other major currencies during trading today, Friday, in the European session, to trade above its lowest level in nine months, which it recorded earlier in trading, and the US dollar is heading towards recording the largest weekly decline since the end of May Last May, these large losses come after Federal Reserve Chair Janet Yellen’s statements about the future of monetary policy, and the United States is scheduled to announce important data on consumer spending and other data on consumer confidence in the economy.

At exactly 11:45 GMT, the US dollar index rose to trade at 95.45 points from the opening level at 95.29 points, and it recorded the highest level at 95.53 points, while it recorded the lowest level at 95.21 points, the lowest since September 27, 2016.

At the close of trading yesterday, the index fell, recording losses by 0.5% for the third consecutive day, due to the increase in purchasing power of the euro and the pound sterling, following the recent statements of European Central Bank President Mario Draghi and British Central Bank President Mark Carney that supported tightening policy. cash for Europe and Britain.

Throughout this week's trading, the dollar index incurred losses by about 1.6%, heading towards recording the largest weekly decline since the end of May.

Federal Reserve Chair Janet Yellen said this week that the bank is heading in its tightening policy gradually, but the economy must reach the bank's targets in order to raise interest rates gradually.

The US economy is expected to release a set of important economic data, which is represented in data on the rate of consumer spending, which represents about 70% of the GDP. These data are important for monetary policy makers, as their positivity pushes the bank to further monetary tightening policy.

The data on the rates of consumer spending is represented in the personal spending index during May, and the index is expected to rise by 0.1% compared to the month of April, which recorded an increase by 0.4%, and the personal income index will be announced for the month of May amid expectations that the index will rise by about 0.3% from a rise of about 0.4% during April.

As for consumer confidence, the final reading of the University of Michigan’s consumer confidence index will be released in June, and it is expected to come with the same initial reading at 94.5 points, as will the Chicago Industrial Index, and estimates show that it will reach 58.1 points during June compared to May May scored 59.4 points.

Currency technical analysis - a look at the Australian dollar's trading against the US dollar

The Australian dollar pair against the US dollar is trading at the level of 0.7685, as the price continued to rise bullishly, in an attempt to target the resistance level, as shown in the chart.

Currency technical analysis

Currency technical analysis

 

The price is trading above the level of the moving average indicator line, as both stochastic and MACD indicator show a positive crossover towards the bullish trend on the four-hour time frame.

Therefore, the price is expected to continue the upward trend, targeting the price level 0.7740

 

Mohamed Abdel Khaleq
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