An Exploration Into The Possibility Of The US Dollar Reaching Heights Beyond $100 Again Amidst Recent Volatility

• On July 13th, the US dollar dipped below the key $100 mark, experiencing a 0.75% decline, followed by a 0.20% drop the next day, before recovering slightly to close up by 0.14%.
• On July 26th, the financial community is anticipating commentary from Jerome Powell, the Chair of the Federal Reserve, which could hint at a possible interest rate hike before the end of the year.
• Since reaching its peak in September 2022 at $114.74, the dollar has depreciated over 13%, suggesting a continued bearish trend given the current momentum.

The US dollar's volatility has attracted significant attention. On July 13th, the price unexpectedly fell below the significant threshold of $100, experiencing a 0.75% decline in one day.

The next day, it dropped an additional 0.20% before eventually recovering and closing up by 0.14% on the same day.

These events suggest that the US dollar may have already reached a level of support, potentially indicating a forthcoming rebound.

Investors eagerly anticipate July 26th as Jerome Powell, Chair of the Federal Reserve, is set to share insights that may shed light on the possibility of interest rate hikes before the year's end.

Speculation is abound regarding a potential 25 basis point increase, which would undoubtedly influence the value of the US dollar.

While the impact may have a long-term impact on the dollar's price, the announcement is expected to prompt short-term price fluctuations.

While the dollar recently dropped below the significant $100 level, it's important to consider that this may not be a true breakout.

If the dollar quickly rebounds and surpasses the $100 level in the coming days, it could lead to a rally.

On the other hand, if the $100 level remains a strong resistance, it could hinder any upward momentum and contribute to a further decline in the dollar's value.

The dollar's current weakness highlights the importance of identifying key support levels quickly.

One crucial level to pay attention to is the weekly 200 simple moving average at $98.

Observing the market's reaction at this level, if the price reaches it, could offer valuable insight into the future direction of the dollar.

The dollar's value has decreased by more than 13% since its peak in September 2022. With the current bearish momentum, it seems likely that this downward trend will continue.

After the closing bell on Monday, July 17, the dollar closed at $99.53, trading down by 0.08%.