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USD Graphic Rewind: Choppy Market Sentiment Keeps Us Looking at Short-Term Moves
Written by article default Thursday, 09 June 2011 08:24
Things are beginning to look at day more constructive in the short-term for the dollar index as it has posted three days of higher highs and has started the fourth day (today) with a positive tone too, managing to extend its highs further. As the euro consolidates its burst above 1.4500 and players mull weather there is impetus to push on back toward 1.5000 or weather a lower top is in the process of being carved the buck is making some gains. Sentiment has been shifting back and forth at an ever quickening pace between favouring the greenback or the euro as news continues to flow about the situation of Greece’s second bailout and concerns mount over the US’ growth outlook. As sentiment toward the two currencies continues to oscillate it makes for a difficult time predicting direction since things can change incredibly quickly.
As such, we are limited to only looking a short-term charts and this little bullish run the index has gone on could hae the momentum to carry thte index back toward 9600, if the euro declines back toward 1.4500 as it consolidates. However, with Trichet slated to speak later today after the ECB rate decision markets could turn choppy and if he intimates that rate hikes are in the offing we could see this bullish slant negated in favour of dollar losses.
Written by Jonathan Granby, DailyFX Research Team