The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has started the week on a positive note and is now hovering over the 95.20 area. What next should traders expect? Take a look at this 27 August US Dollar Index Technical Outlook.
27 August, OctaFX – The index remains well supported around the 95.00 neighbourhood, coincident with the 55-day SMA and closer to the key short-term support line off June’s low at 93.20.
US Dollar Index well supported near 95.00
The greenback so far manages to shrug off the dovish tone by Chief Powell at the Jackson Hole Symposium last week, while attention appears to have shifted to the flattening yield curve, a potential rate hike at the September meeting and the omnipresent US-China trade dispute.
On another front, USD speculative net longs climbed to the highest level since May 9 2017 during the week ended on August 21, according to the latest CFTC report.
Data wise today, nothing scheduled in the US docket should leave the focus on the German IFO to be published later in the European morning.
27 August US Dollar Index Technical Outlook
As of writing the index is up 0.01% at 95.18 and a break above 95.53 (21-day SMA) would aim for 95.71 (high Aug.23) and then 95.84 (10-day SMA). On the flip side, the immediate support emerges at 94.98 (55-day SMA) followed by 94.93 (low Aug.22) and finally 94.08 (low Jul.26).
AUG 27, 2018
This article about 27 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.