The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, is extending the choppy trade so far this week and is now hovering over the 96.80 region.
November 16, GKFX – The index is reverting yesterday’s advance and remains on a cautious stance close to the 97.00 mark amidst confusing headlines from the Brexit negotiations and uncertainty around the future of PM Theresa May.
US Dollar Index Looks to Brexit, data
In fact, alternating trends in the risk-associated space stay in direct correlation with developments on the EU-UK front and Italian politics, all in turn affecting the performance around the buck.
In addition, the index remains vulnerable to the recent optimism around the US-China trade dispute ahead of the upcoming meeting between Trump and Xi Jinping at the G20 gathering later in the month.
Later in the NA session, October’s Industrial Production and Capacity Utilization area due along with the speech by Chicago Fed C.Evans (2019 voter, dovish).
US Dollar Index Forecast
As of writing the index is losing 0.17% at 96.93 facing the next support at 96.79 (10-day SMA) followed by 96.75 (low Nov.14) and finally 96.60 (21-day SMA).
On the other hand, a breakout of 97.69 (2018 high Nov.12) would open the door to 97.87 (61.8% Fibo retracement of the 2017-2018 drop) and then 99.89 (monthly high May 11 2017).
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