US Dollar Index looks to rebound lows near 94.40 at the end of the week. What can traders expect next?
14 September, OctaFX – Tracked by the US Dollar Index (DXY), the greenback remains under pressure so far this week and is now meandering the key 94.45/40 support band.
US Dollar Index Looks to Rebound From 94.40 Lows
The index is navigating fresh 6-week lows in the proximity of the 94.40 level at the end of the week, extending at the same time the recent breakdown of the critical short-term support line and the key contention area in the 95.00 neighbourhood.
A better mood in the risk-associated sphere stemming from alleviated concerns in the EM FX universe, lack of fresh and significant headlines from the US-China trade dispute and recent disappointing results in the US calendar from Producer Prices and the CPI have all been undermining any attempt of recovery in the buck in past sessions, thus relegating the index to trade in multi-week lows.
Back to US data space, Retail Sales, Industrial and Manufacturing Production and the preliminary print of the Consumer Sentiment for the current month are all due later.
US Dollar Index relevant levels
As of writing the index is losing 0.07% at 94.47 facing the next support at 94.36 (low Sep.14) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26).
On the flip side, a break above 95.74 (high Sep.4) would aim to 96.04 (50% Fibo of the 2017-2018 drop) and then 96.96 (2018 high Aug.15).
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