9:29 AM · 13 November 2024

Chart of the day - USDIDX (13.11.2024)

Since its local low at the beginning of October, the dollar has gained 6%. This is the most dynamic increase since the beginning of consolidation nearly two years ago.

The catalyst for such a strong move was, of course, the presidential elections and the extension of the so-called Trump Trade. However, on other instruments (stocks and bonds), we are already observing a slowdown in gains and some profit-taking. In contrast, the USD continues to appreciate. The USDIDX is trading today up 0.16% around 106 points. The market has fully priced in Donald Trump's victory, with gains even taking on a more speculative and euphoric tone. Considering that the Republicans will take power at the end of January 2025, markets are already pricing in Donald Trump's presidency before the official transition.

From a technical perspective, the last six weeks of dynamic gains have pushed the USDIDX index to the upper boundary of a two-year consolidation channel above 106 points. Furthermore, strong moves in the dollar are being observed during a period when the Fed has started cutting interest rates. Given this, the potential for further gains seems limited. For bulls, the most important resistance level remains the zone above 106 points.

 

Source: xStation 5

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