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US Dollar Index reverses Friday's gains, plunges into 106.00

  • The US Dollar Index has gone full reverse in Friday trading following a forecast-busting NFP release.
  • The DXY pegged a new low for the week after dropping away from 107.00.
  • Market sentiment has twisted the throttle on risk appetite to close out the trading week, piling out of safe havens.

The US Dollar Index (DXY) tumbled in Friday trading after briefly reclaiming the 107.00 handle, sagging into a fresh low for the week at 105.95.

US Non-Farm Payrolls (NFP) figures on Friday handily beat forecasts, adding 336K jobs in September, well above the forecast decline to 170K and surging above the previous month's reading of 227K (revised upwards from 178K).

US Nonfarm Payrolls soar by 336,000 in September vs. 170,000 forecast

Inflation remains a firmly sticky thorn in the Federal Reserve's (Fed) side, and ongoing inflationary pressure is making market participants nervous that the Fed will have no choice but to keep interest rates higher for longer.

US: All eyes will be on inflation data – RBC

Forex Today: US data sustains Dollar strength, focus shifts to inflation

Dollar Index technical outlook

The US Dollar Index spiked to an intraday high just shy of the 107.00 level in Friday's trading on reaction to the better-than-expected NFP report, but broader markets quickly turned risk-on, sending the DXY into a fresh low for the week at 105.95.

The US Dollar is trapped on the low end to close out the trading week after Friday's nearly-1% plunge top-to-bottom, and the DXY is set for a showdown on daily candlesticks with a rising trendline from July's lows at 99.56.

Dollar Index daily chart

Dollar Index technical levels

Dollar Index Spot

Overview
Today last price106.07
Today Daily Change-0.27
Today Daily Change %-0.25
Today daily open106.34
 
Trends
Daily SMA20105.73
Daily SMA50104.25
Daily SMA100103.42
Daily SMA200103.16
 
Levels
Previous Daily High106.85
Previous Daily Low106.32
Previous Weekly High106.84
Previous Weekly Low105.52
Previous Monthly High106.84
Previous Monthly Low103.27
Daily Fibonacci 38.2%106.52
Daily Fibonacci 61.8%106.65
Daily Pivot Point S1106.16
Daily Pivot Point S2105.97
Daily Pivot Point S3105.62
Daily Pivot Point R1106.69
Daily Pivot Point R2107.04
Daily Pivot Point R3107.22

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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