The US Dollar Index (DXY) has given away initial gains and has now receded to the current 95.15/10 band, or session lows. What should traders look to? This is highlighted in the following 7 August US Dollar Index Technical Outlook.
7 August, GKFX – The index is trading weekly lows in the boundaries of 95.10 following a pick up in the demand for the Chinese Yuan, which dragged USDCNY to fresh lows in the 6.83 neighbourhood.
US Dollar looks to trade, data
In this regard, the PBoC said its FX reserves climbed to $3.118 trillion at the end of July, adding that the reserve levels will stay stable overall. The central bank noted financial asset price fluctuations, changes in non-dollar currencies all collaborated with higher reserves last month.
The PBoC also noted that volatility in financial global markets is poised to increase and that the fluctuation in CNY has increased considerably.
In the meantime, the US-China trade dispute remains poised to drive the markets’ sentiment for the time being.
In the data space, JOLTs Job Openings during June are coming up next seconded by the NFIB index and the weekly report on US crude oil inventories by the API.
7 August US Dollar Index Technical Outlook
As of writing the index is losing 0.27% at 95.12 facing the next support at 94.98 (low Aug.3) seconded by 94.80 (10-day SMA) and finally 94.50 (55-day SMA).
On the upside, a breakout of 95.20 (high Aug.6) would aim for 95.38 (high May 29) and then 95.53 (high Jun.28).
This article 7 August US Dollar Index Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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