Dollar index violates 9-year ascending trendline, hits 32-month low

  • The dollar index trades at levels last seen in April 2018. 
  • US yields rise on renewed expectations for US fiscal stimulus. 
  • Risk-on overshadows rising yields and keeps the dollar on the defensive.

Having dived out of the trendline rising from May 2011 and May 2014 lows last week, the dollar index, which tracks the greenback's value against majors, is now trading at 91.24 - the lowest level since April 2018. 

The greenback is down 0.6% this week despite an uptick in Treasury yields and US inflation expectations. 

The 10-year yield advanced by ten basis points to 0.938% on Monday, the highest level since Nov. 12. The 30-year yield jumped by 12 basis points to 1.67%. Further, long-term inflation expectations, as represented by the 10-year breakeven inflation rate, rose to 1.81%, the highest level since July 2018. 

Bonds took a beating on Congress' new push for federal aid
to businesses and state and local governments hurt the
coronavirus pandemic. Further, President-elect Joe Biden indicated that he would deliver a bigger relief package, forcing markets to price in a surge in bond supply. 

Some analysts believe the US fiscal largesse and the resulting uptick in yields are positive for the dollar. So far, however, that has failed to materialize. 

The dollar is losing ground, possibly because the renewed prospects of additional US fiscal stimulus are boding well for the risk assets. The greenback could suffer deeper declines in the near-term if the risk-on action continues. 

Technical levels

Dollar Index Spot

Today last price 91.23
Today Daily Change 0.05
Today Daily Change % 0.05
Today daily open 91.18
Daily SMA20 92.42
Daily SMA50 93.12
Daily SMA100 93.3
Daily SMA200 95.96
Previous Daily High 92.02
Previous Daily Low 91.15
Previous Weekly High 92.81
Previous Weekly Low 91.76
Previous Monthly High 94.31
Previous Monthly Low 91.5
Daily Fibonacci 38.2% 91.48
Daily Fibonacci 61.8% 91.69
Daily Pivot Point S1 90.88
Daily Pivot Point S2 90.58
Daily Pivot Point S3 90.02
Daily Pivot Point R1 91.75
Daily Pivot Point R2 92.32
Daily Pivot Point R3 92.62



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 


EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 


Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Forex Today: Yellen's stimulus boosts sentiment ahead of Biden's inauguration, BOC, Bailey eyed

The market mood is cheerful with stocks and gold rising and the dollar retreating ahead of Biden's inauguration. Yellen has made the case for more stimulus, boosting sentiment. 

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News