US Dollar Index

The dollar index remains at the back foot on Monday and pressuring key supports at 103 zone (lows of mid / late Dec, where a temporary base has formed) after strong fall on Friday (down 1.1% for the day).

The dollar came under increased pressure after US labor data signaled that the Fed may further ease its stance on interest rates, while China’s further easing of strict Covid policy, added to improving risk sentiment.

Daily studies returned to bearish configuration, contributing to weakening tone, though fresh bears need to register a clear break of 103 support zone, which would also confirm penetration into rising weekly cloud (top of the cloud lays at 103.64) and signal continuation of the downtrend from 114.72 (2022 high, the highest since 2002) which paused for consolidation in past two weeks.

Sustained break of 103 zone pivots (also bull-trendline off 89.50, May 2021 low) would risk drop towards 101.94 (50% retracement of 89.15/114.72 ascend), 100.44 (weekly cloud base) and 100 (psychological).

Initial resistances at 103.95 (10DMA) and 104.11 (20DMA) should ideally cap, but extended upticks should not exceed 105.41 (Friday’s high (Fibo 23.6% of 113.02/103.06) to keep larger bears intact

Res: 103.95; 104.11; 104.52; 105.41.
Sup: 103.06; 102.63; 101.94; 100.44.

Chart

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD steady around 0.6640 ahead of Aussie’s inflation data

AUD/USD steady around 0.6640 ahead of Aussie’s inflation data

The Australian Dollar registered minuscule losses against the US Dollar on Tuesday amid higher US Treasury yields.  A softer-than-expected US 5-year Treasury note auction boosted the Greenback, which posed gains versus most other currencies. As the Asian session begins, the AUD/USD trades at 0.6649.

AUD/USD News

EUR/USD churns chart paper but makes little progress ahead of Wednesday’s German CPI inflation

EUR/USD churns chart paper but makes little progress ahead of Wednesday’s German CPI inflation

EUR/USD rose to an intraday high near 1.0890 on Tuesday before market flows dragged the pair back down to familiar levels near 1.0860, and the pair is holding on-balance as Euro traders head into a fresh print of German Consumer Price Index inflation. 

EUR/USD News

Gold shines bright and hits three-day high despite Fed hawkish commentary

Gold shines bright and hits three-day high despite Fed hawkish commentary

Gold price was modestly up late in the North American session, registering gains of around 0.15% amid high US Treasury bond yields that make it less appealing to hold the non-yielding metal. Consequently, the Greenback erased its previous losses, capping Gold’s rally. The XAU/USD trades around $2,357.

Gold News

Ethereum follows sideways trend as ETH community favors 'programmable money' slogan

Ethereum follows sideways trend as ETH community favors 'programmable money' slogan

Ethereum followed a sideways trend on Tuesday as the crypto community seems to favor the term 'programmable money' as ETH's one-liner. Meanwhile, whales have continued accumulating ETH despite profiting from the recent price spike.

Read more

Price inflation isn't an accident; It's a policy

Price inflation isn't an accident; It's a policy

If you listen to government officials and central bankers talk about price inflation, you might think they don’t have the foggiest idea of what caused it. It might have been supply chain problems, or perhaps it was Putin’s fault.

Read more

Majors

Cryptocurrencies

Signatures