The main scenario is still the growth of the dollar, including against the backdrop of greater stability of the US economy compared to other major economies in the world.
Strong bullish momentum is pushing the DXY dollar index towards more than 20-year highs near 120.00, 121.00. The breakdown of the local “round” resistance levels 114.00, 115.00 will be a signal that the DXY index will return to growth.
The next week will start rather calmly due to the lack of publication of important macro statistics until the end of the trading day on Monday (for more details about the events of the upcoming week, see the Most Important Economic Events of the Week 10/17/2022 – 10/23/2022).
And today, market participants will also pay attention to the publication at the beginning of the American trading session of fresh data on retail sales in the United States and a preliminary index of consumer confidence from the University of Michigan, which is a leading indicator of consumer spending (for more details, see the Major economic events of the week 10/10/2022 – 16/10. 2022).
In an alternative scenario, a sell signal will be a breakdown of the support level at 112.57 and the local support level at 112.14, while the important support levels at 111.10 and 110.20 become the target for a decrease in DXY. Further decline is unlikely, but theoretically (technically) possible. Targets – key support levels 106.20, 104.50
*) For important events of the next week, see the Most Important Economic Events of the Week 10/17/2022 – 10/23/2022 -> https://www.instaforex.com/en/forex_analysis/324350/?x=PKEZZ
Support levels: 112.57, 112.14, 111.10, 110.20, 106.20, 104.50
Resistance levels: 113.00, 113.89, 114.00, 114.74, 115.00
