Fears about a possible global trade war have weighed on the dollar in recent sessions. But how does the index trade now that the tariff-based trade war subsides? A look into this 27 March US Dollar Index Technical Analysis reveals.
27 March, GKFX – The greenback – measured by the US Dollar Index – is alternating gains with losses today around the critical 89.00 handle.
US Dollar vulnerable amidst risk on mood
The continuation of the risk on sentiment is undermining any recovery attempt by the buck so far this week, keeping the index under heavy pressure in the 89.00/88.90 band. In fact, the effervescence around the probable US-China trade war has fizzled out in the last hours, lending extra legs to the risk-rally and putting the buck under extra pressure.
Further developments supporting flows into riskier assets saw yields of the key US 10-year reference climbing to the boundaries of the 2.85% handle, reflecting the selling bias in the US money markets as well.
In the US data space, house prices gauged by the S&P/Case-Shiller Index is due later in the NA session followed by March’s Consumer Confidence tracked by the Conference Board and the speech by Atlanta Fed R.Bostic (voter, centrist).
27 March US Dollar Index Technical Analysis
As of writing the index is up 0.03% at 89.05 and a break above 89.74 (10-day sma) would aim for 89.88 (23.6% Fibo of 95.15-88.25) and then 90.44 (high Mar.20). On the flip side, next support aligns at 88.92 (low Mar.27) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).
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