The absence of economic reports, combined with any other news, has led to a kind of standstill. There's a good chance that we will likely see a repeat of the Friday scenario. After all, the economic calendar is empty. However, the dollar has the potential to edge up. The greenback's period of weakness last week was partly due to increased tension in the Middle East. There was a risk of pulling other regional countries, along with the United States, as Israel's main ally, into the Palestinian-Israeli conflict. Israeli media reported Friday that Tel Aviv is under international pressure to postpone a ground operation in the Gaza Strip. This will undoubtedly reduce tension in the region. But more importantly, it rules out direct U.S. involvement in any military action. This could play in favor of the dollar. Geopolitical factors currently have a greater influence than macroeconomic factors.
Testing the resistance area of 1.0600/1.0620 eventually led to a decrease in the volume of long positions. As a result, the price stalled and it eventualy rebounded.
On the four-hour chart, the RSI indicator is moving in the lower area of 30/50. It crossed the 50 mid line as the price rebounded from the resistance level.
On the same time frame, the Alligator's MAs are intersecting each other, indicating a slowdown in the upward cycle.
Outlook
We expect buying volumes to increase after the price consolidates below 1.0560. In this case, the price could move towards the 1.0530-1.0500 area. The alternative scenario will come into play with the price fluctuating within the 1.0565/1.0600 range.
The comprehensive indicator analysis in the short-term and intraday periods indicates a downward movement once the price rebounds from the resistance level.
