USD: Rebound signals strength – Nordea

💡 DMK Insight

The recent USD rebound against the EUR and JPY is a short-term blip, and here’s why that matters: While the USD’s uptick might seem promising, Nordea’s bearish long-term outlook suggests that this is more about market positioning than genuine strength. Investors are increasingly looking for alternatives, which could mean a shift in capital flows. If you’re trading pairs like EUR/USD or USD/JPY, watch for resistance levels that could indicate a reversal. The 1.10 level for EUR/USD and 150 for USD/JPY are critical points to monitor. A failure to hold these levels could trigger a sell-off, aligning with Nordea’s bearish sentiment. But here’s the flip side: if the USD manages to break through these resistance levels, it could attract short-term traders looking for quick gains. This could lead to increased volatility, especially if institutions jump in. Keep an eye on economic indicators like inflation rates and employment data, which could sway sentiment quickly. The next few weeks will be crucial for gauging whether this rebound is sustainable or just a temporary bounce.