US Dollar Index outlook: Pullback from new 20-year high likely to stall
|US Dollar Index
The dollar remains in red on Tuesday, weighed by renewed risk appetite, down 3% from new 20-year high at 114.72, posted last week.
Monday’s weaker than expected numbers from US manufacturing sector in September added to negative near-term outlook, but the impact is likely to be short-lived as the largest world economy is still in a good shape, with expectations for further aggressive steps by Fed to maintain support and keep the dollar attractive.
Markets await for results from key US labor sector indicators (private sector is expected to add 200K new jobs in Sep from 132K in Aug – ADP and non-farm payrolls are expected to rise by solid 250K, following 315K rise last month), with solid numbers in September to offer fresh support to the greenback
The pullback cracked 38.2% retracement of 104.49/114.72 upleg, reinforced by 20DMA (110.84) facing headwinds there, as stochastic is deeply oversold on daily chart.
Extended dips should find ground above psychological 110 support to keep larger bulls intact for fresh push higher.
Res: 111.81; 112.25; 112.51; 113.26.
Sup: 110.81; 110.23; 110.00; 109.61.
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.