US Dollar Index outlook: Dollar remains inflated by risk aversion on Delta variant spread
|US Dollar Index
Dollar remains inflated by risk aversion on Delta variant spread US DOLLAR INDEX The dollar remains steady in early Tuesday’s trading and retested new 3 – 1/2 month high (93.03), posted after bullish acceleration on Monday.
The global spread of the highly contagious Delta variant of coronavirus raised fears of a pandemic resurgence and prompted investors into safety that lifted the greenback.
Technical studies on the daily chart are supportive for further advance (20-d Bollinger bands expand, moving averages are in full bullish setup and momentum studies are overall positive), but overbought stochastic suggests bulls may take a breather before pushing towards the next target at 93.45 (2021 high posted on Mar 31).
Broken Fibo 76.4% level (92.52) reverted to the solid support, reinforced by rising 10DMA and expected to ideally contain dips.
Only return and close below ascending 20DMA (92.32) would question larger bulls and soften the near-term structure.
Res: 93.03; 93.11; 93.45; 94.00.
Sup: 92.79; 92.52; 92.32; 92.06.
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