The US dollar trades with a bearish tone following the debt ceiling agreement
Ripple gained more than 8% in one week
The technical picture looks bullish as the $0.55 resistance level looms large
The dollar is under pressure after the over-the-weekend announcement that a debt ceiling agreement has been reached. The decline is visible not only in the traditional financial markets, but also in the cryptocurrency one.
Ripple, in particular, trades with a bid tone. It gained over 8% in one week and recovered the $0.5 level.
With only one full trading day left in the month, can Ripple gain some more?
Ripple chart by TradingView
However, this time might be different.
An inverse head and shoulders pattern is a bullish reversal pattern formed just before the current market rally. It is not unusual for the market to make a new higher high after such a pattern appears, and so, a break above the resistance level should not surprise anyone.
That is particularly possible if the economic data out of the United States disappoints. On Friday, the NFP report is key for interpreting what the Federal Reserve will do next with the interest rate level. A weakening job market might put the Fed on pause and thus trigger another leg lower for the US dollar.
