The US Dollar Index (DXY), which measures the greenback vs. a basket of its main rivals, has intensified the downside and tested fresh lows in the 95.40 region, where seems to have found some support. What levels should traders now watch? Find out in the following 21 August US Dollar Index Technical Outlook.
21 August, OctaFX – The index is prolonging the leg lower for yet another session on Tuesday, quickly breaking below the 96.00 key support and so far meeting some contention in the 95.40 area, where is located the 21-day SMA.
US Dollar Index hurt by Trump
The index tumbled further late on Monday after President Trump criticized the Fed’s tightening cycle, hinting at the likelihood that intervention to weaken the buck amidst the ongoing trade wars appears not entirely ruled out for the time being.
In the meantime, US-Turkey tensions remain high with the situation around US pastor A.Brunson in the centre of the debate as well as the persistent decline in the Turkish currency.
Looking ahead, the FOMC minutes due tomorrow will be the salient event this week.
21 August US Dollar Index Technical Outlook
As of writing the index is losing 0.24% at 95.57 facing the next support at 95.40 (21-day SMA) seconded by 94.99 (low Aug.8) and finally 94.86 (55-day SMA).
On the other hand, a break above 96.07 (10-day SMA) would open the door to 96.98 (2018 high Aug.15) and then 97.87 (61.8% Fibo of the 2017-2018 drop).
This article about 21 August US Dollar Index Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.