Dollar index holds above 38.2% Fib ahead of the US midterm elections

The Dollar Index (DXY) is holding above 96.04 (38.2% Fib R of 103.82/88.25).
US midterm elections are expected to produce a split Congress.
A Republican majority in both chambers could put a bid under the greenback.

Omkar Godbole FXStreet Contributor

The dollar index (DXY) is currently trading at 96.40, having defended the 38.2 percent Fibonacci support of 96.04 on Friday.

The greenback is trading in a sideways manner above the key Fib, likely due to caution ahead of the US midterm elections, which are expected to produce a split Congress - Democrats to take House and Republicans to retain the Senate.

The narrative in the market is that a Republican majority in both Chambers may embolden Trump to push for more fiscal stimulus. As a result, the greenback may pick up a bid if Republicans retain both House and the Senate.

On the other hand, the dollar may take a beating if the Democrats secure a majority in both Chambers and use their majority to investigate Trump's Russian ties and financial affairs.

Dollar Index Technical Levels

Dollar Index Spot

Overview:
    Last Price: 96.4
    Daily change: 5.0 pips
    Daily change: 0.0519%
    Daily Open: 96.35
Trends:
    Daily SMA20: 96.01
    Daily SMA50: 95.38
    Daily SMA100: 95.2
    Daily SMA200: 93.21
Levels:
    Daily High: 96.69
    Daily Low: 96.25
    Weekly High: 97.2
    Weekly Low: 95.99
    Monthly High: 97.2
    Monthly Low: 94.79
    Daily Fibonacci 38.2%: 96.42
    Daily Fibonacci 61.8%: 96.52
    Daily Pivot Point S1: 96.17
    Daily Pivot Point S2: 95.99
    Daily Pivot Point S3: 95.73
    Daily Pivot Point R1: 96.61
    Daily Pivot Point R2: 96.87
    Daily Pivot Point R3: 97.05

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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