The greenback, in terms of the US Dollar Index (DXY), is now fading the initial spike to the vicinity of 95.80 and returns to the mid-95.00s. What follows next? Take a look at today’s technical analysis.
18 October, GKFX – The upside momentum in the index gathered extra oxygen as of late after the FOMC minutes signaled on Wednesday that further tightening remains well on the cards by the Federal Reserve.
In addition, the minutes discarded any influence on the Committee by recent comments by President Trump.
US Dollar Index Looks to Data
The buck moved higher in tandem with yields of the key US 10-year note, which managed to climb back to levels above 3.21%, recording at the same time fresh multi-day peaks.
In the data sphere today, the usual weekly report on the labour market is due seconded by the always-relevant Philly Fed index. Attention, as well, should be on the EU Leaders Summit, which kicks in today with Brexit in centre stage.
US Dollar Index Technical Analysis
As of writing the index is losing 0.14% at 95.50 and a breakdown of 95.41 (10-day SMA) would open the door to 95.10 (21-day SMA) and finally 94.79 (low Oct.12). On the flip side, the initial up barrier lines up at 95.77 (high Oct.18) seconded by 96.16 (high Oct.9) and then 96.98 (2018 high Aug.13).
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