Dollar needs to fully overcome a key level to soar
Dec 17 (Reuters) -The U.S. dollar looks set for even bigger gains in the days and weeks ahead, but the greenback needs to fully overcome a key technical level.
The dollar held firm and near recent peaks on Tuesday, on the eve of an expected Federal Reserve interest rate cut, as traders have ratcheted long-term rate assumptions higher. The speculative dollar long position has risen to its highest level since July.
However those who are bullish on the USD index, which tracks the greenback against a basket of six major currencies, need to see a close above the 107.066 Fibonacci level: a 61.8% retrace of the 108.09 to 105.41 (November to December) drop.
If there is a daily close above the 107.066 Fibo, that would likely lead to much bigger gains to probe the 107.458 Fibo, a 76.4% retrace of the same 108.09 to 105.41 fall, as 2025 approaches.
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Daily Chart: https://tmsnrt.rs/4glRy9s
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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