The reports of US-China trade talks have put a bid under the S&P 500 futures, but so far, has not had any positive impact on the greenback. At the moment, how is the dollar trading? Let’s find out with this 26 March US Dollar Index Technical Analysis.
26 March, GKFX – The dollar index (DXY), which tracks the value of the greenback against majors, is trading in a sideways manner around 89.40. Also, the 10-year US Treasury yield is flatlined around 2.83 percent.
US budget deficit woes could cap gains in the greenback
The American dollar may rise if the US and/or China soften their stance on trade, however, the gains will likely be short-lived as the $1.3 billion spending bill approved by Congress, and signed by Trump could bring the budget deficit/twin deficit fears to the forefront.
26 March US Dollar Index Technical Analysis
A break above 89.56 (March 14 low) would expose resistance at 89.78 (5-day MA) and 90.00 (psychological hurdle). On the downside, breach of support at 89.40 (March 7 low) could yield a sell-off to 89.02 (Feb. 5 low) and 88.72 (Jan. 26 low).
This article 26 March 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.
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