The greenback, in terms of the US Dollar Index is alternating gains with losses at the end of the week and is now hovering over the 94.60 area. What is next? Gain insight into this 31 August US Dollar Index Technical Outlook.
31 August, OctaFX – The index has resumed the downside after yesterday’s positive session and following an unsuccessful attempt retake the critical barrier at 95.00 the figure.
US Dollar Index focused on EM FX, data
Heightened concerns in the EM FX space gave legs to the demand for the buck on Thursday, particularly in response to the sharp sell off in the Turkish Lira (TRY) and the Argentenean Peso (ARS). The up move, however, run out of steam just ahead of the 95.00 mark, motivating the ongoing knee jerk.
Moving forward, the final reading of the US Consumer Sentiment gauged by the U-Mich index is only due later in the NA docket.
31 August US Dollar Index Technical Outlook
As of writing the index is down 0.07% at 94.61 facing the next support at 94.45 (low Aug.28) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26).
On the upside, a breakout of 95.01 (55-day SMA) would open the door to 95.51 (21-day SMA) and finally 95.71 (high Aug.23).
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