Powell Sends the US Dollar Lower and It Could Go Lower Still
2024.08.26 16:27
sold off sharply last week, especially on Friday after Powell delivered his dovish .
Interestingly, the stock market didn’t see much of a rally, but based on the current price action, we believe it’s only a matter of time before we see a new break higher on stock index, while the dollar remains in a downtrend.
What’s notable is that stocks are holding support on Monday, despite new geopolitical issues in the Middle East over the weekend, signaling that risk-on sentiment is likely to persist.
Meanwhile, the dollar seems poised for a break towards 100 or even lower when looking at the DXY. However, we could see some pullbacks from current June 2023 support, in the near term.
If that happens, the 101.64 level could act as resistance for the fourth wave rally.
