US Dollar Index: Next on the upside comes 97.80 – UOB

Pablo Piovano FXStreet

Quek Ser Leang at UOB Group’s Global Economics & Markets Research comments on the recent price action around the US Dollar Index (DXY).

Key Quotes

“Two weeks ago, USD Index surged above the Sep’s high of 94.74. This level is also near the top of the weekly Ichimoku cloud and the breach of this key technical level resulted in a sharp and swift rally (note that this is the first time USD Index is above the Ichimoku cloud since Jun last year). Weekly ADX has risen above the 25 level which indicates that the current rally is in a ‘trending’ mode. In other words, USD Index could continue to advance at a rapid clip.”

“The next resistance level of note is at 97.80, the high in Jun 2020. This level is also near to the 61.8% retracement of the multi-month decline from last March (high of 102.99) to the low of 89.21 in Jan this year. On the downside, the previous resistance at 94.74 is acting as solid support now but only an unlikely break of the 55-week exponential moving average would indicate that USD Index is not ready to trend upwards in the months ahead.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.