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The U.S. Dollar soared against a basket of currencies on Wednesday following an upbeat comment from President Trump on U.S.-China trade relations and as investors downplayed the impact from the impeachment inquiry on President Trump following the release of the transcript of the phone call between Trump and Ukraine’s President. This move encouraged investors to dump safe-haven currencies like the Japanese Yen and Swiss Franc, which had risen sharply in yesterday’s session.
On Wednesday, December U.S. Dollar Index futures settled at 98.659, up 0.732 or +0.75%.
The dollar rose after President Donald Trump said a U.S.-China trade deal could arrive sooner than expected. Trump told reporters at the United Nations in New York that a U.S.-China deal could come sooner “than you think.” Both countries have been engaged in trade negotiations since last year.
The dollar extended its earlier gains after the memo released by the Trump administration did not appear to show an explicit quid pro quo by the president, but more details have yet to come out.
Daily Technical Analysis
The main trend is down according to the daily swing chart, but momentum is trending higher. A trade through 98.670 will change the main trend to up. A move through 97.560 will signal a resumption of the downtrend.
The minor trend is up. This is controlling the upside momentum.
Because of the numerous swings in the market, the support is a series of 50% levels at 98.230, 98.115 and 97.930.
Daily Technical Forecast
On the upside, the first target is the main top at 98.670. Taking out this level will change the main trend to up. This could trigger a surge into the uptrending Gann angle at 98.860.
Crossing to the strong side of this angle will indicate the buying is getting stronger. This could trigger a further rally into the next main top at 98.900, followed by a pair of uptrending Gann angles at 98.980 and 99.040.
Due to the series of potential support levels at 98.230, 98.115 and 97.930, any selling is likely to be a laborious event.
This article was originally posted on FX Empire