The dollar is on a knife-edge
Oct 4 (Reuters) -The U.S. dollar could move either way as it trades below solid technical resistance, after staging a recovery from the recent 2024 low.
U.S. economic data and the U.S. presidential election are adding uncertainty to the outlook for the currency.
The greenback hovered near a six-week high on Friday, partly boosted by safe-haven demand as investors weighed the widening Middle East conflict and its impact on the global economy. The USD index, which tracks the dollar against a basket of six major currencies, peaked on Thursday at 102.090.
The index remains stuck under thick daily cloud resistance, that currently spans the 101.955-103.320 region, which could well lead to an eventual relapse.
However, if there is a sustained break above the 102.434 Fibo level, the 38.2% retrace of the 106.13 to 100.15 (June to September) drop, that would lead to bigger gains in the days and weeks ahead.
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Daily Chart: https://tmsnrt.rs/4esCndC
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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