Short-term two-way risks – OCBC

The US dollar (USD) eased amid slippage in initial jobless claims, but levels remain capped at recent lows. The dollar index (DXY) was last at 100.65, OCBC FX analysts Frances Cheung and Christopher Wong note.

An interim double bottom appears to be forming

“Daily momentum is slightly bullish while the RSI has declined. An interim double bottom appears to be forming – we continue to watch price action. Resistance at 101.10 (21 DMA), 101.90. Support at 100.20 levels (interim double bottom).”

“This week, we are watching core PCE (Friday). A hotter print would reignite fears of second-round inflation risks, especially as the Fed guides for early rate cuts. We are also mindful of end-of-quarter flows that may distort price action in the short term.”