Gauged by the US Dollar Index (DXY), this 6 April US Dollar Index Technical Analysis shows that the greenback is advancing to the area of fresh multi-week peaks in the 90.50/60 band. What factors contributed to the buck’s rally?
6 April, GKFX – The index managed to break above the consolidative theme prevailing during the first half of the week and is now flirting with fresh 5-week tops in the vicinity fo 90.60 amidst a persistent risk-on sentiment in the global markets.
In fact, easing effervescence around US-China potential trade war plus auspicious comments from Trump’s Advisor on Thursday gave extra legs to the buck’s rally despite overnight comments from President Trump, hinting at the possibility of extra tariffs on Chinese imports.
US Dollar attention to US jobs
Later in the NA session, US Non-farm Payrolls will be in center stage as well as the gauge of wage inflation tracked by Average Hourly Earnings. The jobless rate, in the meantime, is expected to tick lower to 4.0% in March.
In addition, Chief Jerome Powell will speak on ‘Economic Outlook’ later in the day.
6 April US Dollar Index Technical Analysis
As of writing the index is up 0.13% at 90.55 and a break above 90.89 (38.2% Fibo of 95.15-88.25) would open the door to 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the flip side, immediate contention lies at 89.98 (10-day SMA) seconded by 89.82 (low Apr.2) and then 88.94 (low Mar.27).
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