US Dollar Talking Points:
US Dollar Price Action Calms After Early-November Pullback
It’s been a calmer week so far in the US Dollar[1] as the currency has traded within a fairly tight range so far. After falling on Monday to continue the Thursday/Friday sell-off from last week, support came in at the 23.6% retracement of the October bearish move and has since helped to hold the lows. Buyers haven’t exactly made a loud entry back into the market, however, as a quick blip of strength on Tuesday and Wednesday remained constrained by a longer-term zone of resistance that runs from 97.86-97.94.
This leaves the US Dollar in an interesting spot as we’re now just past the halfway point in Q4. The October sell-off looms large and carries continuation potential as the early-November pullback was rebuffed at the 50% retracement of that major move. The three-month-low is around a double bottom formation in the 97.11 vicinity; and if sellers can pose a push beyond that level another longer-term Fibonacci level comes into view at 96.47.
US Dollar Daily Price Chart
Chart prepared by James Stanley[2]; US Dollar on Tradingview[3]
Taking a step back to look at the big picture and the bearish side of the scenario becomes that much more interesting. It’s been a net move of strength in the US Dollar so far this year, with DXY catching a support test off the 95.00 level in the first full week of the year. But buyers haven’t exactly been invigorated, as each push up to fresh highs has been accompanied with trepidation and often followed by a pullback. This led into the build of a rising wedge pattern, which will often be approached with the aim of bearish reversals. That began
