DXY: Bullish momentum on daily chart intact – OCBC
The Dollar Index (DXY) rose, taking cues from higher UST yields and the run-up in USD/JPY above 160-mark. Elsewhere, slippage in EUR also added to gains in the DXY. This week, the focus is on PCE core (Fri), OCBC analysts Frances Cheung and Christopher Wong note.
DXY seems bullish ahead of US PCE
“Softer core CPI, PPI readings in May should see core PCE print softer. A weaker than expected print should raise hopes for Federal Reserve (Fed) rate cut. This should also tamper USD gains, but hotter print may continue to fuel USD momentum.”
“DXY was last at 105.84 levels. c while RSI is near overbought conditions. Resistance at 106.20. Support at 105.20 (21, 50 DMAs), 104.80 (61.8% fibo retracement of Oct high to 2024 low).”
“We also note that ½-yearly end and month-end flows may have the potential to distort price action later this week. US presidential debate on Fri may also be of interest to FX and rates markets.”
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FXStreet Insights Team
FXStreet
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