It is very likely it will test the resistance at 94 and potentially, break through it. If the break will happen this week but it won't shoot up too much, then next week could have some more action. But then again, stay sharp.
Aiming for 95 and then 96.
I think the strength could come from the Euro weakness. Especially, if the EURUSD is forming a Head-and-Shoulders (check out my previous analysis on this pair).
Now, my other little theory, which maybe is a little crazy, but still... Because we are heading into the best sales season, Christmas time, the US Dollar needs to get a bit stronger, so that people would see that their money worth something. There are different news coming out about that the spending could be reduced, due to people getting motivated not to spend too much on gifts and presents this upcoming holiday season. Which is not ideal for the retailers, as this is the best season for getting those sales in. I won't be surprised if future Consumer Price Indexes will start falling before New Year, as Consumer Confidence will get worse.
Of course, this is all my crazy theory. But then, if we are trying to trade these markets, then we are all a bit crazy!
Keep an eye on the price action!
Aiming for 95 and then 96.
I think the strength could come from the Euro weakness. Especially, if the EURUSD is forming a Head-and-Shoulders (check out my previous analysis on this pair).
Now, my other little theory, which maybe is a little crazy, but still... Because we are heading into the best sales season, Christmas time, the US Dollar needs to get a bit stronger, so that people would see that their money worth something. There are different news coming out about that the spending could be reduced, due to people getting motivated not to spend too much on gifts and presents this upcoming holiday season. Which is not ideal for the retailers, as this is the best season for getting those sales in. I won't be surprised if future Consumer Price Indexes will start falling before New Year, as Consumer Confidence will get worse.
Of course, this is all my crazy theory. But then, if we are trying to trade these markets, then we are all a bit crazy!
Keep an eye on the price action!
