US Dollar Eyes Higher Levels Amid Geopolitical Tensions
2024.10.02 08:46
The is currently in recovery mode, something we had highlighted in recent updates when we identified a reversal pattern with an ending diagonal on the .
So far, we’ve seen a strong breakout from this pattern, driven in part by risk-off flows following escalating geopolitical tensions in the Middle East.
Reports indicate that Iran has fired around 200 ballistic missiles on Israel, contributing to the dollar’s recovery while stocks have seen a setback.
It’s also crucial to keep an eye on , which is on the rise, suggesting there could be further strength ahead.
More upside in crude often correlates with increased geopolitical tensions, which in turn could push stocks even lower. In my view, the dollar rally from the September lows can be corrective but it should unfold in three waves then.
So far, we’re still only in the first leg of this potential three-wave recovery, which suggests that recovery could extend toward the 101.80–102 resistance zone, especially after B wave.
