US Dollar Index: Dollar surges across the board on US trade tariffs

Slobodan Drvenica Windsor Brokers

US Dollar Index

The dollar index opened with gap-higher on Monday (up 1.1%), lifted by threats of trade war after US President Donald Trump imposed tariffs on imports from Canada, Mexico and China.

Two top US trading partners, Canada and Mexico immediately announced the counter measures, while China will look for assistance from World Trade Organization.

Although the dollar eased from the session peak, near-term structure remains firm, as daily studies improved (14-momentum emerged from negative territory, RSI rose above neutral 50 zone and MA’s turned into full bullish setup.

Markets see strong potential for further dollar’s rise in the environment of growing uncertainty over the negative consequences of trade war that fuels risk aversion.

Res: 109.73; 110.00; 110.50; 111.06.
Sup: 108.61; 108.40; 107.89; 107.59.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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