The US Dollar Index aims to retest 95.00 figure after it managed to leave the area of recent lows. What can traders expect next?
13 September, OctaFX – The decline in the index appears to have met decent support in the 94.75/70 band so far this week, although it broke below the critical short-term support line, opening the door for an extension of the leg lower.
US Dollar Index focused on CPIP figures
Absent relevant drivers or events in the US economy, the broad risk appetite trends continued to favour the risk-associated complex this week, amidst some exhaustion in the US-China trade front, alleviated jitters in the EM FX space and lower-than-expected US Producer Prices during August.
Looking ahead, key inflation figures gauged by the CPI for the month of August should drive the sentiment around the buck later in the NA session. In addition, the ECB and BoE monetary policy meetings will also grab attention.
US Dollar Index Aims to Retest 95.00
As of writing the index is up 0.07% at 94.91 and a breakout of 95.74 (high Sep.4) would open the door to 96.04 (50% Fibo of the 2017-2018 drop) and finally 96.96 (2018 high Aug.15). On the other hand, immediate contention aligns at 94.74 (low Sep.12) seconded by 94.45 (low Aug.28) and then 94.08 (low Jul.26).
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