Dollar to soar due to fundamental and technical factors
Oct 17 (Reuters) -The U.S. dollar looks set to soar due to a combination of fundamental and technical factors.
The dollar has not only drawn support from a run of upbeat data on the U.S. economy, which has caused traders to scale back their expectations of Fed rate cuts, but also on the possibility of a victory by Republican presidential candidate Donald Trump at next month's election.
The USD index, which tracks the dollar against a basket of six major currencies, each day this week has tradedabove the broken 103.140 Fibo - a 50% retrace of the 106.13 to 100.15 (June to September) drop. That is a bullish development, especially as 14-day momentum remains positive, reinforcing the upside bias.
The index closed above the top of the daily cloud, which currently spans 101.628-103.155, pavingthe way for a probe of the 103.846 Fibo - a 61.8% retrace of the same 106.13-100.15 drop.
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Daily Chart: https://tmsnrt.rs/3AcrhKF
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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