- The US Dollar Index printed a new 2021 high at 94.62, on better than expected US NFP.
- The US 10-year Treasury yields drop almost seven basis points, undermining the greenback.
- DXY: A break above 94.62 would open expose the 95.00 figure.
The USD Dollar Index, also known as DXY, measures the greenback’s performance against a basket of six peers, slides during the New York session, down 0.07%, sitting at 94.26 at the time of writing.
Better than expected US Nonfarm Payrolls report showed that the US economy added 531K new jobs, more than the 425K foreseen, initially prompting the US Dollar Index towards new yearly highs, around 94.62. However, US Treasury yields are dropping, with the 10-year benchmark note slumping almost seven basis points, down to 1.458%, for the first time since October 4.
US Dollar Index Price Forecast: Technical outlook
The daily chart depicts the US dollar’s upward bias, as the daily moving averages (DMA’s) remain well below the price, with an upward slope. It is worth noting that despite the greenback being weaker on the day, it is holding above the November 1 high at 94.31, which in case of closing above it, would keep USD bulls at the range of another test of the 2021 year highs.
Furthermore, Andrew Pitchfork’s indicator tool shows that the US dollar has been comfortably trending up in the lower range of the channel at no risk of a downward break.
If the US dollar bulls want to accelerate the uptrend, they will need a break above 94.60. In that outcome, the following resistance area would be 95.00. On the flip side, a break below 94.00 would push the DXY towards the 50-day moving average at 93.48.
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