US Dollar Index outlook: Dollar is on track for the second big weekly loss on cooling expectations
|US Dollar Index
The dollar index dipped to new one-month low in early Friday, with fresh weakness signaling continuation of the downtrend from 105.04 peak (20-year high, posted on May 13), after bears were paused for consolidation in past three days.
The greenback remains deflated as traders lowered their expectations for aggressive Fed’s action in coming months, on signals that the US central bank may slow or even pause its policy tightening cycle in the next meetings.
Dissonant tones from some FOMC members on initial hawkish stance and weak economic data, add to the notion.
The index is on track for the second consecutive strong weekly loss, but bears face headwinds from important support at 101.38 (50% of 97.72/105.04 upleg, reinforced by weekly Tenkan-sen) that may further delay bearish continuation.
Daily studies show rising negative momentum, while 10/20/30DMA’s are in bearish setup and formed a multiple bear-crosses, adding to downside pressure.
The near-term action is expected to remain below broken Fibo 38.2% support at 102.24, to keep bears intact for final push through 101.38 pivot that would open way for test of targets at 101.51/00 (Fibo 61.8% / psychological).
Res: 102.34; 102.45; 102.69; 103.00.
Sup: 101.38; 101.04; 100.51; 100.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.