The greenback, in terms of the US Dollar Index (DXY), keeps the upbeat mood intact as we enter the second half of the week and is now flirting with session tops in the proximity of 95.40. What should we expect? Read on as this 19 July US Dollar Index Technical Outlook will show you.
19 July, GKFX – The index is up for the third session in a row on Thursday, adding to recent gains and prolonging the bullish momentum following the ‘outside day’ candle charted on Tuesday.
US Dollar looks to data
After testing weekly lows in the 94.30 (Tuesday), the buck managed to stage quite a robust rebound, regaining at the same time the 95.00 milestone and above. The current firm buying interest in the greenback plus Wednesday’s close at-above 95.06 allows for a potential re-visit to YTD peaks in the mid-95.00s in the near term horizon.
Events-wise, Powell’s testimony before the House Financial Services Committee on Wednesday left no room for surprises, therefore having no impact on the buck or the FX in general.
Later in the US docket, usual Initial Claims are due seconded by the more relevant Philly Fed manufacturing index.
19 July US Dollar Index Technical Outlook
As of writing the index is up 0.21% at 95.32 facing the next resistance at 95.41 (high Jul.18) seconded by 95.53 (2018 high Jun.21) and finally 96.00 (psychological handle).
On the downside, a breach of 94.70 (21-day sma) would target 94.40 (short-term support line) en route to 94.04 (23.6% Fibo of the April-June up move).
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