US Dollar Under Pressure Amidst Market Uncertainty
The US Dollar (USD) is trading lower on Tuesday, following a sharp rally last week. The market is cautious, awaiting the release of key economic data and Federal Reserve speeches.
Key Factors:
- Market Sentiment: Risk-off sentiment is prevailing, with European stocks and the Chinese Hang Seng 300 Index experiencing significant declines.
- Economic Data: The US Economic Optimism Index and Goods Trade Balance data are expected to be released, but are not expected to be major market movers.
- Fed Speeches: Several Federal Reserve officials are scheduled to speak, providing potential insights into the Fed's monetary policy stance.
Technical Analysis:
- Downward Trend: The US Dollar Index (DXY) is facing downward pressure after a recent rally.
- Resistance Levels: Key resistance levels are at 103.18, 103.32, 103.76, and 103.99-104.00.
- Support Levels: Potential support levels are at 102.03, 100.62, 100.16, and 99.58.
Overall Outlook:
The US Dollar is likely to remain volatile, influenced by market sentiment, economic data, and Federal Reserve speeches. Traders should monitor technical indicators for signs of a trend reversal.