The dollar is still in a commanding position and seems ready to extend its gains in the new week. USD/JPY continues to hold above 140.00 while EUR/USD starts to contest levels below 1.0700 with room to roam towards 1.0500. Meanwhile, AUD/USD is threatening the 0.6500 mark and NZD/USD is looking to test 0.6000 for now.
Elsewhere, gold is also likely to collapse as it competes with its 100-day moving average at $1936 with the 50.0 Fibonacci retracement of the March-May swing high at $1935 as well. A break below there should accelerate the bearish momentum towards $1900 after that.
All of this comes as the dollar rose amid a shift in market sentiment on the Fed’s outlook. What was supposed to be three rate cuts by the end of the year has now completely turned around. Don’t say you weren’t warned though.
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