US Dollar Index outlook: Dollar starts to gain traction but remains overall bearish
|US Dollar Index
The dollar index regained some ground on Wednesday following strong drop in past two days, on calmer tones over recent turbulence in banking sector and growing hopes that deeper crisis can be averted.
However, investors remain cautious, as recent issues in US banks are expected to continue to strongly influence the dollar, with any signals of further calming of the situation or new cracks in the banking system, to spark stronger movements of the US currency.
Technical picture on daily chart is still bearish, suggesting that limited recovery is likely to precede fresh push lower.
Initial resistance lays at 102.73 (falling 10DMA) guarding upper pivots at 103.15/18 (55DMA/Fibo 38.2% of 105.85/101.53), which should cap upticks to keep bears in play.
Res: 102.55; 102.73; 103.18; 103.70.
Sup: 102.02; 101.88; 101.53; 101.00.
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.