- The US Dollar consolidates near highs with the broader bullish trend losing steam.
- US Consumer confidence and JOLTS Job Openings data will determine USD’s direction on Tuesday.
- A bearish engulfing candle on Monday and bearish divergence warns about an upcoming correction.
The US Dollar is moving sideways below two-month highs near 0.8700. The pair remains buoyed on the back of broad-based USD strength with the overall bullish trend losing momentum
The recent strong US data, which has crushed hopes of further large cuts by the Fed and rising hopes that Trump will win a second term next week are underpinning US Dollars strength.
The market awaits a batch of key data releases this week, starting with the US Consumer Confidence and JOLTS Job openings data, due later on Tuesday.
The technical picture shows the bullish trend losing momentum. The bearish engulfing candle printed on Monday is a negative sign and the bearish divergence on the 4-hour RSI points in the same way.
Support at 0.8645 is holding bears for now. Below here, the next targets are 0.8615 and 0.8555. Resistances are 0.8700 and 0.8745.
