US Dollar Index Tumbles


The US dollar index tumbled further as it approaches the 95.00 figure. What can traders expect next? Will the index continue to drop?

15 October, GKFX – The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has started the week on the defensive and is now coming in closer to the critical support at 95.00 the figure.

US Dollar Index Looks to Data

The index continues to fade Friday’s advance against the backdrop of a deteriorating sentiment in the stock markets, which is lending extra support to the Japanese safe haven and is forcing USDJPY lower.

In the meantime, yields of the key US 10-year reference keep the narrow sideline theme around the 3.15% ahead of key releases in the US calendar later today.

Moving forward, the greenback should be in centre stage in light of the publication of the NY Empire State index and September’s Retail Sales. In addition, the US Treasury is expected to release its bi-annual report on FX manipulation, although it is unlikely that mentions China as a ‘currency manipulator’.

US Dollar Index Drops Near 95.00

As of writing the index is losing 0.22% at 95.05 and faces immediate support at 94.98 (21-day SMA) seconded by 94.95 (low Oct.12) and then 94.20 (38.2% Fibo of the 2017-2018 drop).

On the upside, a breakout of 96.16 (high Oct.9) would open the door to 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo retracement of the 2017-2018 drop).

Disclaimer

This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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