US dollar bounces from 93.50 target, hourly bullish structure under construction
19.10.2021, 20:10

US dollar bounces from 93.50 target, hourly bullish structure under construction

  • The US dollar has found its feet in the US session and has started to carve out a bullish structure. 
  • There is room for an upside extension to target 93.80/90.

The price of the US dollar, as measured by the DXY index vs a basket of rival currencies, has recovered from the 93.50 targets and is embarking on a run to 93.80 at the time of writing. 

US dollar 1-hour chart

As illustrated, the price has retested the neckline of the W-formation and is now making tracks towards 93.80. A break there opens risk towards 93.87 18 Oct lows. 

US yields and dollar to continue higher 

In confluence, US yields are rising and the 10year benchmark is printing a fresh daily high of 1.642% with 1.706% now eyed 13 May pivot. ''Global yields are stabilizing after yesterday’s panic moves,'' analysts said but argued that the inflation debate is by no means settled, not with supply chain issues and higher commodity prices still percolating through the system. 

''As we wrote yesterday, this debate will likely take weeks, if not months, before some sort of definitive conclusion can be reached. However, we are confident that US rates and the dollar will continue rising throughout this debate.''

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