Dollar Index Technical Analysis


The 21 March US Dollar Index Technical Analysis shows that the dollar index (DXY) is trading in the sideways manner around 90.30 as investors await the all-important US Fed rate decision. What is more?

21 March, GKFX – The greenback moved above 90.00 yesterday, possibly due to a jump in the front end treasury yields. The two-year yield rose 4 basis points to 2.35 percent yesterday. Meanwhile, end-2019 Fed Funds futures rose above 2.5 percent for the first time, suggesting the markets are expecting a higher terminal rate (neutral rate).

Focus on the Fed

A 25 basis point rate hike has been baked-in. So the focus will be on the Fed’s wording on inflation and policy tightening. The greenback will likely surge across the board if the Fed revises higher 2019/20 rate forecasts, signaling scope for a higher terminal rate.

21 March US Dollar Index Technical Analysis

A convincing move above 90.38 (previous week’s high) would open doors for 90.93 (February high) and 91.13 (September low). On the downside, breach of support at 89.87 (weekly low) could yield a pullback to 89.41 (March 7 low) and 89.00 (psychological level).

Disclaimer

This article 21 March 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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