US Dollar Faces Supports: Potential Double Bottom Signals Market

US Dollar Faces Supports: Potential Double Bottom Signals Market Dynamics

Major currency pairs continue their range-bound movement on Monday as investors refrain from making significant directional bets. The market sentiment is cautious due to escalating concerns, with investors eyeing key inflation data releases from both the United States (US) and the Eurozone later in the week.

Early Monday, Asian markets saw declines, influenced by the People’s Bank of China's (PBOC) lack of detailed information on stimulus measures for private firms and rising respiratory illnesses in China. The ongoing decrease in China’s Industrial Profits, coupled with uncertainty surrounding major central banks' interest rate outlooks, further contributed to the subdued market mood.

The return of US traders after the Thanksgiving holiday break is awaited, and the US S&P 500 futures, considered a risk barometer, indicate a 0.30% decline on the day.

Despite the cautious market sentiment, the US Dollar experiences selling pressure as it hovers around the 103.200 zone. Notably, there's potential for a Double Bottom formation, suggesting a strong recovery for the USD. The existence of a Fair Value Gap (FVG) around $105.000 becomes noteworthy, serving as a potential target point in the event of a market reversal.


Our Preference

Above 102.600 look for further upside with 104.2150 & 105.000 as targets.