Dollar Index trades on a solid foot near 99.80

The flight to safety environment continues to bode well for the US dollar.
The global reserve currency has become a preferred haven amid heightened recession fears.

Omkar Godbole FXStreet Contributor

Persistent haven demand for the US dollar, a global reserve currency, is keeping the dollar index, a measure of greenback's performance against its main rivals, better bid on Thursday.

Pressing against MA hurdle

The index is chipping away at the 10-day moving average hurdle at 99.82 at press time, having put in a session low of 99.62 a few minutes ago.

The market mood remains anti-risk, as evidenced by the 0.85% decline in the futures tied to the S&P 500. Investors are shunning risk, possibly due to fears of coronavirus led recession, triggered by the International Monetary Fund's (IMF) forecast for a 3% decline in the global gross domestic product this year.

Investors typically buy classic safe havens like the Japnese yen, Swiss franc, and gold during times of stress in the financial markets. However, lingering coronavirus scare has established cash, mainly the US dollar, as the king of tough times.

The index advanced from 98.82 to 99.98 on Wednesday as the dismal US retail sales figure bolstered recession fears and triggered a flight to safety. The index, however, closed 99.57, up 0.72% on the day.

The psychological level of 100 could come into play again or could be breached on Thursday if the risk-off tone worsens after the weekly US employment report.

Technical levels

Dollar Index Spot

Overview
Today last price	99.79
Today Daily Change	0.22
Today Daily Change %	0.22
Today daily open	99.57

Trends
Daily SMA20	100.2
Daily SMA50	99.09
Daily SMA100	98.28
Daily SMA200	98.2

Levels
Previous Daily High	99.98
Previous Daily Low	98.83
Previous Weekly High	100.93
Previous Weekly Low	99.36
Previous Monthly High	103
Previous Monthly Low	94.63
Daily Fibonacci 38.2%	99.54
Daily Fibonacci 61.8%	99.27
Daily Pivot Point S1	98.94
Daily Pivot Point S2	98.31
Daily Pivot Point S3	97.79
Daily Pivot Point R1	100.09
Daily Pivot Point R2	100.61
Daily Pivot Point R3	101.24

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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