DXY: Boosted by risk-off trades – OCBC
|US Dollar (USD) received another jolt higher overnight, this time due to sudden turn in risk sentiments. DXY last at 100.10 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Daily momentum is bullish
"Equities in Asia were down, with KOSPI leading losses while precious metals hold losses and bitcoin briefly slipped below $100k mark at one point overnight. Chatters of valuation concerns, profit-taking were amongst some of the reasons cited for the risk-off trades.
"To add, absence of US data due to government shutdown as well as a less committal and divisive Fed were already providing the excuse for USD short squeeze to play out. Given dovish pricing for 2026, any pare back in expectations may add to further USD upticks in the interim."
"Daily momentum is bullish, but RSI shows signs of turning from near overbought conditions. We are observing if there are signs of moderation in the pace of rise. Resistance at 100.50/60 levels (200 DMA, 76.4% fibo). Support at 99.80 (61.8% fibo), 99.10 levels (50% fibo retracement of May high to Sep low), 98.40 (38.2% fibo)."
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.