COMMENT-Those
that are bearish dollar have more work to do
Nov 30, 202316:51 GMT+5
USDJPY
+0.28%
GBPUSD
−0.37%
EURUSD
−0.45%
DXY
+0.54%
The latest U.S. dollar rise needs to be curtailed in order
to prevent a bigger recovery and keep bears in overall control.
Speculators recently cut their long dollar positions, in
response to growing downside risks. The dollar edged up from a three-month low
on Thursday but was still set to post its steepest monthly decline in a year as
investors ramped up bets that the Federal Reserve was done with rate hikes.
The USD index, which tracks the dollar against a basket of
six currencies, on Wednesday broke but failed to close under the 102.525 Fibo,
a 61.8% retrace of the 99.549 to 107.34 (July to October) rise. That is a
possible bear trap, set when a market breaks below a technical level but
subsequently reverses and is usually a bullish sign.
Those that are bearish the dollar need to force sustained trading back below the 102.525 Fibo, in order to negate the bear trap and refocus the overall bias on the downside
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