The US dollar (USD), a global reserve currency, has been the subject of significant market attention and speculation in recent times. As the world closely monitors the US Federal Reserve's monetary policy decisions, the question arises: Should the central bank continue with interest rate hikes or await the release of the inflation report to gain a clearer sense of direction? In this article, we will explore the factors influencing the mixed sentiment surrounding the US dollar and the potential consequences of both scenarios.
The UKOIL Performance
The price pushed up to the breakout zone suggested at a price point of 78.23. The buyer’s zone has shown to move and will be looking for an entry this week should the price push through and close above 78.29.
The target at price point 84.84 remains the same, all traders should monitor it closely and conduct risk management before entering their positions. The daily candle will be on the move and where it closes today, if there is a close beneath the buyer’s zone, then we will wait for the price to form some action for clearer direction.
![US Dollar (USD) Looms Around](https://www.tdmarkets.com/wp-content/uploads/2023/07/Brent-OIL-1024x409.jpg)
The USDCAD Performance
We had a weaker dollar after the NFP release, expectations were not met, and data with an influence on the sentiment in the opposite direction of strength. We had discussions about a stronger CAD in this pair with the price pushing lower on the daily timeframe. A rising wedge after the low was giving us a signal for further downside to 1.29218. The CAD is a commodity-driven currency that is currently correlating with the Brent crude price, showing strength.
We had a breakout but an immediate daily recovery by the CAD at a price point of 1.33410. We await further movement down for a daily close beneath price point 1.32370. As a result, we will see an update of entries once we see the price perform below the suggested breakout area.
![US Dollar (USD) Looms Around](https://www.tdmarkets.com/wp-content/uploads/2023/07/USDCAD-1024x434.jpg)
Read More: The CPI & Forex: How CPI Data Affects Prices
The EURJPY Performance
We are still bullish on this pair with a quick update. We are looking for 2 Targets at 159.881 &162.683. Price has formed additional action on the bullish expanding triangle. This is a critical zone because the next formulation will suggest that the setup is not valid. We will revisit the direction of this pair if we get a daily break and close beneath the price point of 155.505. Traders should monitor it closely this week and be ready to adapt if the situation arises a need for it.
![US Dollar (USD) Looms Around](https://www.tdmarkets.com/wp-content/uploads/2023/07/EURJPY-1-1024x262.jpg)
Final Thoughts On Today’s Analysis
The US dollar's mixed sentiment reflects the uncertainties and complexities of the current economic environment. Choosing between continuing with interest rate hikes or awaiting the inflation report is a decision that requires careful consideration of various factors. Both approaches carry potential benefits and risks.
As the Federal Reserve grapples with the task of navigating inflationary pressures and supporting economic recovery, striking the right balance is crucial. Clear communication, data-driven decision-making, and a focus on sustainable long-term growth will be essential in shaping the US dollar's trajectory and ensuring the stability of global financial markets.