US Dollar Index outlook: Dollar edges higher ahead of release of key US economic data on Thursday
US Dollar Index
The dollar index bounced on Wednesday, after 200DMA (103.52) repeatedly contained dips in recent sessions.
Reversal pattern is forming on daily chart and 14-d momentum is ascending from negative territory and pressuring the centreline, contributing to positive signals, which will still look for additional confirmation on daily close above cracked Fibo barriers at 104.00/02 (converged 10/20DMA’s / 50% retracement of 104.85/103.19 bear-leg).
However, firmer direction signals are expected to come from releases of inflation data from the US on Thursday, which will give more details about Fed’s plans to start cutting interest rates.
Near-term action is expected to keep bullish bias while holding above 103.80 zone (broken Fibo 38.2% / daily Tenkan-sen).
Res: 104.02; 104.22; 104.46; 104.85.
Sup: 103.80; 103.52; 103.19; 102.93.
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.
