A fresh bout of buying orders in the greenback is now pushing the US Dollar Index (DXY) to the area of daily highs around 95.40. How might the index be impacted later in the session? Find out with this 4 September US Dollar Index Technical Outlook.
4 September, OctaFX – The index has reverted yesterday’s pullback and is now testing the area of fresh multi-day peaks in the 95.40 region, closer to the key 21-day SMA at 95.54.
US Dollar Index bid ahead of ISM
The up move in the buck comes along a rebound in yields of the US 10-year note to levels beyond 2.88%, always against the backdrop of the US-China trade dispute and expectations of further tightening by the Federal Reserve.
Later in the US session, the manufacturing gauge measured by the ISM will be in the limelight seconded in relevance by the IBD/TIPP index and the speech by Chicago Fed C.Evans.
4 September US Dollar Index Technical Outlook
As of writing the index is gaining 0.42% at 95.53 and a breakout of 95.65 (high Jul.19) would aim for 95.71 (high Aug.23) and finally 96.04 (50% Fibo of the 2017-2018 drop). On the other hand, the next support emerges 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).
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