17 July US Dollar Index Technical Analysis: DXY on the defensive near 94.30

Tracked by the US Dollar Index (DXY), the greenback is once again on the defensive, this time challenging daily lows in the 94.35/30 band. What is next? Study this 17 July US Dollar Index Technical Analysis to have an idea

17 July, GKFX – The index is down for the second consecutive session on Tuesday, trading closer to the 94.30 region – or fresh 5-day lows – after breaking below the critical support area at the 200-hour sma at 94.43, which still remains a key level.

The down move in the buck comes after the Trump-Putin meeting in Finland was on a positive tone despite it did not bring any relevant headlines. On the other hand, yields of the key US 10-year note have faded the spike beyond 2.87% and are now trading close to the 2.86% area.

US Dollar looks to Powell

In the meantime, the buck is expected to trade on a cautious fashion ahead of the Semi-annual testimony by Chief J.Powell before the Senate banking Committee later today.

Consensus among market participants sees Powell delivering a message in line with the statement at the June meeting. However, investors should also be looking for extra comments on the yield curve and some confirmation of the Fed’s gradual tightening cycle.

Still in the US, Industrial Production, the NAHB index and TIC Flows will also be on the docket.

17 July US Dollar Index Technical Analysis

As of writing the index is down 0.09% at 94.43 facing the next resistance at 94.60 (21-day SMA) seconded by 95.24 (high Jul.23) and finally 95.25 (200-week sma). On the downside, a breach of 94.35 (low Jul.17) would target 94.04 (23.6% Fibo of the April-June up move) en route to 93.71 (low Jul.9).


This article 17 July US Dollar Index Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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