Fundamental overview of fiber
In the current environment, the DXY index, the future of the US dollar, suffered a modest swing, retreating from six-week highs after reaching 105.80. The correction to 105.58 reflects investor uncertainty about the future trajectory of Federal Reserve policy, oscillating between the expectation of two rate cuts in 2024 and the updated projection of just one cut.
As the US dollar seeks clear direction, fiber investors remain attentive to the internal dynamics of the US Central Bank and key US economic indicators. Retail sales data to be released on Tuesday will offer a clearer view of the resilience of American consumer spending, further influencing market sentiment towards fiber.
Technical Analysis and Euro Dollar Forecasts
At the time of writing, the fiber is hovering around the key level of 1.0700 after having reached the low of early May below 1.0680. There is a concrete possibility of seeing a return of bullish pressure by taking advantage of the rebound from the key level of 1.0700 which would lead the exchange rate to be able to reach the two short-term LONG objectives in the area of 1.0740 and 1.0764 (annual level).
Conversely, a clear close below 1.0700 would lead the euro-dollar bears to try again to overcome the 1.0680 support, the last obstacle before reaching the yearly level 1.0643.
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