After losing the grip, the US dollar index drops below 95.00 today amidst an improved sentiment in the risk complex. What is next expected?
11 September, OctaFX – The better tone in the risk-associated space is now undermining the performance of the greenback, which is trading in the 94.95/90 band when tracked by the US Dollar Index (DXY). The index is trading on the defensive for the second session in a row today amidst an improved sentiment in the risk complex.
US Dollar Index Breaks Below 95.00
The greenback has so far broken below the critical support at 95.00 the figure, coincident with the key short-term support line, and it has accelerated the decline to the area of daily lows at 94.90.
The current (temporary?) respite in the EM FX universe, some renewed optimism around the Brexit negotiations and the usual rhetoric on the US-China trade dispute appears to be playing against any sustainable recovery in the buck. The upbeat mood surrounding riskier assets has practically left behind recent solid figures from Payrolls and their implications on the Fed’s tightening cycle, although this key driver should keep occasional dips in the buck shallow.
Later in the day, the JOLTs Job Openings is due along with the NFIB index and the usual report on crude oil supplies by the API.
US Dollar Index relevant levels
As of writing the index is losing 0.20% at 94.97 facing the next support 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). On the upside, a break above 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).
This article about US Dollar Index Drops Below 95.00 was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.