- US Dollar bulls stay n charge and eye a continuation for the days ahead.
- The next session could see a correction into a bullish support structure.
The US Dollar rallied as global equities sold off on Thursday after data once again highlighted persistent US labour market strength. Also, we saw disappointing quarterly reports from Tesla and Netflix which soured investor appetite for tech and tech-adjacent market movers, sending the NYSE FANG+ index down 4.6% and propelling the Greenback higher.
The dollar index DXY rose 0.58% against a basket of trading currencies as the money markets continued to price in the Fed's overnight rate to rise to 5.41% in November and remain close to or above 5% until May 2024. On the charts, this leaves the Greenback looking bullish so long as it closes above the prior days' close and stays within bullish territory on the front side of the bullish trendline as follows:
DXY H4 chart
The imbalance between the last few closes is an internal area that could be mitigated in a correction in the sessions ahead but the bullish bias remains intact towards a test of 101.54 prior highs.