USD Index outlook: Dollar index dips through key supports after downbeat US jobless claims data

Slobodan Drvenica Windsor Brokers

US DOLLAR INDEX

The dollar index edged higher on Monday as bears pause after nearly 5% fall last week (the biggest weekly loss since 2009) on rising uncertainty over prolonged global lockdown on coronavirus pandemic.
Fresh upside action could be seen as positioning for further weakness as last Friday's trading penetrated daily cloud and closed within the cloud, generating negative signal.
In addition, increased number of net short dollar positions contributes to bearish outlook.
Extended upticks should stay below psychological $100 level (also last Friday's high) to keep bears intact.
Violation of key supports at 98.11 (Fibo 61.8% of 94.59/103.80 rally); 97.90 (daily cloud base) and 97.79 (200DMA) would generate strong bearish signal for continuation of fall from 103.80 (20 Mar high).

Res: 99.19; 100.00; 100.28; 101.07
Sup: 98.48; 98.33; 98.11; 97.90

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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