USD Index: Soft close would imply a peak in the short run at least and greater downside risk – Scotiabank
|The USD is trading lower. Economists at Scotiabank analyze US Dollar Index (DXY) technical outlook.
DXY is breaking below rising trend support that has guided the market higher through much of May
“USD losses are broad across the G10 FX space and while losses for the DXY do not appear that significant at this point, the index is down for a third session in a row and short-term trading patterns show the index is breaking below rising trend support that has guided the market higher through much of May.”
“A soft close on the day would imply a (technical) peak in the DXY in the short run at least and greater downside risk for the USD after its uninterrupted 3.5% run higher over the month.”
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.