Are you keeping a close eye on the Daily US Dollar Index (DXY)? Well, you should be! The technical analysis shows that the main trend is currently down, but a trade through 101.917 could switch it to an upward trend. Conversely, a trade through 100.534 will reaffirm the downtrend. Keep a close watch on the pivot point at 101.225, as it could determine the market’s direction for the day. Resistance lies at 102.040, while major support can be found at 100.617 to 100.534.
But what’s causing concern in the market recently? Soft U.S. economic data has fueled worries about a potential recession. Weak numbers in the labor market, with job openings at a 3.5-year low and private sector hiring falling short of expectations, are ringing alarm bells. Layoffs have also spiked, particularly in sectors like technology. As a result, traders are starting to anticipate a more dovish stance from the Fed, with speculation rife about a significant rate cut at the upcoming September meeting.
Meanwhile, gold prices are on the rise as expectations of a rate cut grow stronger. Investors are turning to the safe haven asset in anticipation of potential market turbulence. With all these factors at play, it’s essential to stay informed and make well-informed decisions in the ever-changing landscape of the stock market. At Extreme Investor Network, we provide you with unique insights and analysis to help you navigate the twists and turns of Wall Street with confidence. Stay tuned to our blog for the latest updates and expert commentary on all things trading and investing.