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U.S. Dollar Breaks Support Post GDP Data, Eyes 104

Published 07/29/2022, 04:33 AM
Updated 07/09/2023, 06:31 AM

The US dollar is falling sharply this week after GDP contraction for the second time in a row, so technically, the US is in a recession. However, there are different opinions regarding this topic as jobs are still doing well, but a drop in numbers may occur in a few months. Keep in mind that many times economic data is delayed. As such, gold, commodity currencies, stocks and energies can see more gains while USD is falling.DXY hourly chart.

From an Elliott wave perspective, we see USD Index coming down into the third leg of a decline with room for 104.00 as United States 10-Year notes break higher. While USD and US yields are coming down, the Aussie and USD/JPY have the most upside potential. Recently, USD/JPY lost more than 500 pips since breaking out of the wedge.

USD/JPY 4-hour technical analysis chart.

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