After a strong fall on Wednesday, when the DXY dollar index lost more than 1%, and a further decline on Thursday, the dollar is recovering today, with its DXY index rising 17 points above yesterday’s closing price.
However, this growth is not yet sustainable, given the continued decline in US Treasury yields. And yet, it is impossible to disregard the fact that the Fed’s monetary policy at the moment remains, perhaps, the toughest among the world’s largest central banks, and most of the major market players prefer to remain on the side of dollar buyers for the time being, characterizing its current decline as long overdue correction.
As for gold, it cedes its role of a protective asset to the dollar, and the XAU/USD pair “broke the key and long-term support level 1690.00 the week before last, jeopardizing the entire long-term bullish trend. The negative dynamics of XAU/USD prevails, and the breakdown of the day before yesterday’s local low (since May 2020) of 1614.77 will confirm our assumption and become a signal to increase short positions on the pair.
Support levels: 1657.00, 1614.00, 1600.00, 1560.00
Resistance levels: 1682.00, 1690.00, 1695.00, 1713.00, 1759.00, 1775.00, 1789.00
see details ->https://www.instaforex.com/ru/forex_analysis/323168/?x=PKEZZ
signals -> https://www.mql5.com/en/signals/author/edayprofit
see also “Technical analysis and trading recommendations” -> https://t.me/fxrealtrading
