US Dollar Index technical analysis: DXY rises above the 98.00 handle as ECB might exceed market expectations

DXY (US Dollar Index) broke above the 98.00 handle as the Euro gets slammed by ECB’s Olli Rehn.
The next targets on the way can be located at 98.10 and the 98.38 levels.

Flavio Tosti Independent Analyst

DXY daily chart

DXY (US Dollar Index) is trading in a bull trend above its main daily simple moving averages (DSMAs). DXY got an indirect boost as the European Central Bank’s (ECB) member Olli Rehn said that ECB stimulus package in September might beat expectations. Earlier, the Retail Sales Control Group in July beat expectations adding to the positive tone on the Greenback.

DXY 4-hour chart

The market is trading above the 98.10 level and its main SMAs. DXY bulls could drive the market towards the 98.38 resistance, which could be the last line of defense before the 98.68 and the 98.93 levels.

DXY 30-minute chart

The buying pressure keeps the Greenback near daily highs. Immediate support could be found near the 98.10 and 97.95 levels.

Additional key levels

Dollar Index Spot

Overview
Today last price	98.14
Today Daily Change	0.15
Today Daily Change %	0.15
Today daily open	97.99

Trends
Daily SMA20	97.73
Daily SMA50	97.23
Daily SMA100	97.37
Daily SMA200	96.97

Levels
Previous Daily High	98.05
Previous Daily Low	97.66
Previous Weekly High	98.11
Previous Weekly Low	97.21
Previous Monthly High	98.68
Previous Monthly Low	96.28
Daily Fibonacci 38.2%	97.9
Daily Fibonacci 61.8%	97.81
Daily Pivot Point S1	97.75
Daily Pivot Point S2	97.51
Daily Pivot Point S3	97.36
Daily Pivot Point R1	98.14
Daily Pivot Point R2	98.29
Daily Pivot Point R3	98.53

Author

Flavio Tosti

Independent Analyst

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.