The final trading week of October has kicked off quietly. It may signal a decline in the US dollar index in the short term. Analysts are certain that it may happen soon. So, which asset is less volatile and safe these days? Watch this video review and find out the answer.
In the Asian session, the US dollar index dropped significantly to 93.50 as we predicted on Friday. However, forex strategists believe that the decline will be short-lived. The nearest support level is seen in the area of 93.50-93.40. Today, the economic calendar remains empty. So, the US dollar is likely to stay flat.
Last Friday, the dollar/yen pair shed 45 pips. Today, it is growing again. Yet, its upward reversal is unlikely to last long. Although some indicators have begun to show a trend reversal, these signals are too weak. This is why the price is expected to decrease to 13.15 from 13.55. Only after this movement, the pair may somehow regain momentum.
On Friday, the Australian dollar was unable to add gains and lost two pips at the close. Today, since the opening of the session, several technical indicators have been showing a rapid rise in the price. For this reason, the likelihood of further growth is quite high. Yet, it may be unsteady. The price could even return to the support level of 0.7445. So, currently, it is better to wait for a correctional move to the indicated support level. After that, the price is highly likely to advance.
Now, market participants are trying to figure out which measures the Fed could adopt to support the economy. They are also looking forward to the ECB and BOJ meetings. Apart from that, the reporting season in the stock market is reaching its peak. By the end of the week, we will be able to make more precise forecasts about the US stock market, as well as the forex and commodity markets. That's all for now! Don't miss our next video review! See you!