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The dollar bounces back from session lows! Latest technical analysis: Bull opportunities have increased

2024-03-27

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On Wednesday (March 27), the U.S. dollar index fluctuated within a narrow range and is currently trading around 104.32. The latest data showed that durable goods orders increased 1.4% month-on-month in February, compared with analysts' consensus forecast of 1.1%. The Case-Shiller home price index fell 0.1% month-on-month in January. The CB Consumer Confidence Report fell to 104.7 in March from 106.7 in February, while analysts expected a rise to 107. Overall, the market is awaiting stronger catalysts and FX traders remain cautious.

FXEmpire special columnist, independent trader and analyst Vladimir Zernov recently wrote an article on the trends of major currencies, and conducted a forward-looking analysis of the U.S. dollar index, EUR/USD, GBP/USD, and USD/JPY, and the market outlook.

The following are the main points of the article:

From a technical perspective, the U.S. Dollar Index needs to stabilize above the resistance at 104.40-104.60 to gain additional momentum.

EUR/USD pulled back as traders reacted to Germany's GfK consumer confidence report, which showed consumer confidence improved to -27.4 in April from -28.8 in March.

If EUR/USD breaks below the nearest support levels at 1.0810 – 1.0830, it will drop to the next support levels at 1.0700 – 1.0720.

GBP/USD is losing some ground after a failed attempt to break through the recent resistance levels of 1.2650 – 1.2685.

If GBP/USD manages to break below the 1.2600 level, it will move towards the nearest resistance levels at 1.2530 – 1.2550.

USD/CAD rebounded from session lows as traders focused on the greenback's overall strength. Other commodity-related currencies moved between gains and losses during today's trading session.

If USD/CAD breaks below the 50-day moving average at 1.3552, it will head towards support in the 1.3480 – 1.3500 range.

USD/JPY remains hovering around key resistance levels of 151.50 – 152.00. Bulls are concerned that the Bank of Japan will intervene if USD/JPY tests the 152.00 level.

It seems that a test of the 152.00 level is almost inevitable, so traders should find out soon whether the Bank of Japan is ready to defend this level.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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The dollar bounces back from session lows! Latest technical analysis: Bull opportunities have increased

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