Following five sessions closing in the red territory, the US Dollar Index (DXY), which gauges the greenback vs. its main competitors, is now posting moderate gains in the 95.35/30 band. What is next? Get updated in the following 23 August US Dollar Index Technical Outlook.
23 August, OctaFX – The index has regained the smile so far in the second half of the week, managing to shrug off some of the recent US political jitters and re-focusing instead on the trade front, where the second tranche of tariffs on Chinese products worth $16 billion kicks in today.
US Dollar Index looks to data, Trump
DXY regained some buying interest in the 95.00/94.90 band on Wednesday following a sharp sell off in past sessions, all in response to the better sentiment in the EM FX space, alleviating trade concerns and particularly after President Trump was in the centre of the debate following accusations by his campaign chair P.Manafort and his lawyer M.Cohen.
On another direction, yesterday’s FOMC minutes left the Federal Reserve poised for another rate hike at the September meeting, while the Committee also discussed the flattening of the yield curve.
Later in the NA sessions, the weekly report on the US labour market is due seconded by Markit’s advanced PMI gauges and New Home Sales during last month.
23 August US Dollar Index Technical Outlook
As of writing the index is up 0.24% at 95.33 and a break above 95.49 (high Aug.23) would aim for 96.06 (10-day SMA) and then 96.98 (2018 high Aug.15). On the downside, the next support aligns at 94.93 (low Aug.22) seconded by 94.92 (55-day SMA) and finally 94.08 (low Jul.26).
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