As the dollar falls below its monthly high, the new month begins with a positive risk-on mood.
The greenback is advancing steadily into midweek after reaching highs last seen on January 6, 2023. Before pulling back, the greenback fell sharply. The mixed mood in the U.S. currency can be attributed mainly to the risk-averse financial markets at the beginning of this week. This is mostly due to geopolitical tensions between Russia and the West, as well as continued hawkish rhetoric by the FED. Bearish factors driving the current price, can be attributed to the Softer U.S data that was released this week as the Consumer Confidence dropped for the second consecutive month to 102.9 versus 106.0 prior, as well as easing Chicago & Richmond PMI data for the month of February. Looking ahead into the new month, there is undoubtedly a cautious mood as investors reassess their positions and brace for the key economic data lined up during March, consisting of the Fed Chairman Jerome Powell’s speech and The Fed’s monetary policy meeting.
Technical Analysis (D1)
Current Price action is a market structure pattern that has created a possible reversal pattern, which looks like a descending channel. The pattern has been…