USD: Dollar looks better priced now – ING

💡 DMK Insight

The recent dollar sell-off was overextended, and Friday’s bounce signals potential short-term recovery. Traders should note that rapid moves in the dollar often lead to corrective bounces, especially when sentiment shifts too quickly. This bounce could indicate a temporary stabilization, but it’s crucial to watch for resistance levels that could cap further gains. If the dollar manages to hold above key support, it may attract buyers looking for a rebound, particularly against major pairs like the euro and yen. However, if the bounce fails and the dollar breaks below recent lows, we could see renewed selling pressure. Keep an eye on the upcoming economic data releases that could influence dollar strength, as they may provide the catalyst for either a continuation of this bounce or a resumption of the downtrend. The next few days will be critical for gauging whether this is a dead cat bounce or the start of a more sustained recovery.