Fundamental approach:
- The US Dollar Index (DXY) traded sideways this week amid stronger global risk sentiment and fading demand for safe-haven assets. The continued US government shutdown delayed key data releases.
- At the same time, the ISM Services PMI rose to an eight-month high, and the ADP report showed stronger-than-expected private job gains, supporting a cautious Fed outlook on further rate cuts. Nevertheless, weak consumer sentiment and rising weekly jobless claims reinforced downside pressure on the dollar index.
- Underlying drivers this week included mixed US data, with upbeat labor and service sector figures contrasting with deteriorating consumer and business sentiment. Investors trimmed bets on imminent Fed rate cuts.
- Looking forward, the DXY may remain heavy as long as safe-haven demand stays muted and official US data is delayed due to the shutdown.
Technical approach:
- DXY retested the psychological level at around 100 and rejected. The price is above both EMAs, indicating upward momentum is still intact.
-If DXY remains below 100, the price may retest the following support at 99.40, which is confluenced with the lower bound of the ascending channel.
- Conversely, breaching above 100 may prompt a conviction to retest the next resistance at 101.70.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The US Dollar Index (DXY) traded sideways this week amid stronger global risk sentiment and fading demand for safe-haven assets. The continued US government shutdown delayed key data releases.
- At the same time, the ISM Services PMI rose to an eight-month high, and the ADP report showed stronger-than-expected private job gains, supporting a cautious Fed outlook on further rate cuts. Nevertheless, weak consumer sentiment and rising weekly jobless claims reinforced downside pressure on the dollar index.
- Underlying drivers this week included mixed US data, with upbeat labor and service sector figures contrasting with deteriorating consumer and business sentiment. Investors trimmed bets on imminent Fed rate cuts.
- Looking forward, the DXY may remain heavy as long as safe-haven demand stays muted and official US data is delayed due to the shutdown.
Technical approach:
- DXY retested the psychological level at around 100 and rejected. The price is above both EMAs, indicating upward momentum is still intact.
-If DXY remains below 100, the price may retest the following support at 99.40, which is confluenced with the lower bound of the ascending channel.
- Conversely, breaching above 100 may prompt a conviction to retest the next resistance at 101.70.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
Trade ist aktiv
Market is currently at make-or-break point, if we have a nice closing candle that can cover the previous day, then it's a higher chance to retest the 100+. Conversely, breaking both channel and support at 99.40 may prompt a further decline to the support at 98.60. So we need to watch for the the actions carefully.
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Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.