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UN Secretary-General António Guterres, through his spokesperson, issued a statement welcoming the US announcement of an extension of the ceasefire, considering it an important step toward de-escalation and creating crucial space for diplomatic engagement and trust-building between Iran and the United States.1. All three major U.S. stock indexes closed lower. The Dow Jones Industrial Average fell 0.59% to 49,149.38 points, the S&P 500 fell 0.63% to 7,064.01 points, and the Nasdaq Composite fell 0.59% to 24,259.96 points. Merck fell nearly 4%, and Honeywell International fell more than 3%, leading the decline in the Dow. The Wind U.S. Tech Big Seven Index fell 0.82%, Apple fell more than 2%, and Tesla fell more than 1%. 2. All three major European stock indexes closed lower. The German DAX fell 0.6% to 24,270.87 points, the French CAC40 fell 1.14% to 8,235.72 points, and the UK FTSE 100 fell 1.05% to 10,498.09 points. 3. The U.S. crude oil futures contract rose 3.2% to $90.22 per barrel; the Brent crude oil futures contract rose 3.75% to $99.06 per barrel. 4. International precious metal futures generally closed lower, with COMEX gold futures down 1.87% to $4,738.50 per ounce and COMEX silver futures down 4.21% to $76.67 per ounce.According to the New York Times, SpaceX has agreed to acquire Cursor for more than $50 billion.SpaceX: Cursor has also granted SpaceX the right to acquire Cursor for $60 billion later this year, or to pay $10 billion for the partnership.U.S. stock index futures opened higher on Wednesday, with Nasdaq futures up 0.4%; spot gold and silver also rose, with gold up 0.1% and silver up 0.5%.

The Dollar Index's Top-to-Bottom Reversal Indicates a Potential Momentum Shift

Drake Hampton

Apr 11, 2022 10:52

On Friday, the US Dollar fell versus a basket of foreign currencies after gaining more than 100 points for the first time in over two years. It reached a high of 100.20 during the session, its highest level since May 2020.

 

Despite the fact that it formed a potentially bearish closing price reversal top, it ended the week up 1.3 percent. Throughout the week, the dollar index was mostly supported by a rise in US Treasury yields and a weaker Euro.

 

The June US Dollar Index closed at 99.753 on Friday, down 0.007 or -0.01 percent. The Invesco DB US Dollar Index Bullish Fund ETF (UUP) closed at $26.68, an increase of $0.01 or 0.02%.

 

On Friday, the US Treasury 10-year yield surpassed 2.7 percent for the first time in three years, aided by the likelihood of more aggressive Federal Reserve tightening. Additionally, this week's release of the Fed's March meeting minutes revealed that "many" members were prepared to raise rates in future months in 50-basis-point increments.

 

In other news, the Euro was under pressure as the election battle between President Emmanuel Macron and far-right contender Marine Le Pen tightened in France, the Euro Zone's second-largest economy. Macron continues to lead polls.

Technical Analysis of the Daily Swing Chart

According to the daily swing chart, the primary trend is upward. However, Friday's closing price reversal top implies that momentum is about to move downward.

 

A move above 99.745 will confirm the price reversal top at the close. This could initiate a 2-3 day adjustment. A break of 100.200 will invalidate the chart pattern and suggest the resumed uptrend. The primary trend will revert to the downside upon a break of 97.730.

 

Minor values range from 97.730 to 100.200. The nearest support level is at its 50% level, or pivot, of 98.965.

 

The critical support level is the long-term Fibonacci retracement level around 98.200.

Scenario of the Bear

Persistent movement below 99.975 indicates the existence of sellers. Taking out 99.745 will confirm the price reversal top at the close. If this generates sufficient downside momentum, expect the selling to extend towards the minor pivot at 98.965.

Scenario of Bullishness

Sustaining a move over 99.975 indicates the presence of buyers. The initial objective on the upside is 100.200.

 

If 100.200 is breached, the closing price reversal top will be invalidated, signaling the resumption of the uptrend. If buying is sufficiently strong, we may see an acceleration to the upside, with the next big objective of 100.560 – 100.930.

 

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