Dollar Index flat ahead of Tokyo markets, looking for buyers after recent bounce

Dollar flat to start the week following recent bounce.
Positive CPI numbers on Thursday could give the Dollar room to breath.

Joshua Gibson FXStreet

The US Dollar has opened the new week of trading relatively flat against a basket of its major counterparts, currently trading close to the week's opening price of 90.33.

The Greenback has faced selling pressure recently, as equity and bond markets readjust their outlooks to include the inevitability of increasing interest rates in the face of rising inflation in key economies, namely the Americas and the Eurozone.

With the Dollar Index fresh off a recent six-week-straight pummeling against its major peers, buyers will be hoping for a positive bump this week when the US drops a hefty docket of data on Thursday at 13:30 GMT, including month-over-month Retail Sales (excluding automotive) bundled with core CPI data. Market forecasts are widely expecting the numbers to come in flat, so a positive beat on numbers could give the Dollar the push it needs to start retaking some of its recent lost ground.

DXY Technicals

The Dollar Index recently found some support at 88.60, a three-year low for the USD; a collapse from here could easily see the American Dollar collapse below 85.00 over time, while bulls must contend with stacked resistance at 91.30 and 92.70 in the near term.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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