BUZZ-COMMENT-Dollar is stuck in a quagmire

Credit: REUTERS/Gary Cameron

March 13 (Reuters) - The U.S. dollar remains stuck in a quagmire as fundamental and technical picture remains unclear, but there is still a marginal downside bias.

The dollar held steady against a handful of rival currencies on Wednesday, as traders weighed what impact hotter-than-expected inflation data could have on chances of an interest rate cut at the Federal Reserve's June meeting.

The USD index, which tracks the dollar against a basket of six major currencies, continues to trade within the thick daily cloud that currently spans the 102.605-103.498 region. However, the large upper shadow on Tuesday's candlestick line points to an upside rejection.

Those that are bearish need the USD index to register a break and daily close under the daily cloud base as that would unmask the 102.276 Fibo, a 61.8% retrace of the 100.61 to 104.97 (December to February) rise. However, break and daily close above the cloud top would signal a shift in bias back to the upside.

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Daily Chart:

(Martin Miller is a Reuters market analyst. The views expressed are his own)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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