DXY: Mild bullish momentum on daily chart fades – OCBC

FXStreet Insights Team FXStreet

US Dollar (USD) traded mixed overnight with softness seen vs. major FX while USD traded modestly firmer vs. most Asian FX including Japanese Yen (JPY). Dollar Index (DXY) was last at 99.32 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Two-way trades likely to persist

"The senate-approved funding measure has garnered enough votes (222-209) to pass in the House and was sent to Trump, which he has just signed. This brings an end to the longest US government shutdown on record. White House has also confirmed that October jobs and CPI data may never be released, ending earlier speculation about jobs data coming as soon as in days."

"Mild bullish momentum on daily chart faded but RSI rose. 2-way trades likely to persist. Resistance at 100 levels (200 DMA), 100.6 (76.4% fibo). Support at 99.10/30 levels (21DMA, 50% fibo retracement of May high to Sep low), and 98.30/50 levels (50, 100 DMAs, 38.2% fibo)."

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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