DXY: Short-term two-way risks – OCBC

The US Dollar (USD) fell amid a decline in initial jobless claims, but levels remain confined to recent lows. The Dollar Index (DXY) was last at 100.65, note OCBC FX analysts Frances Cheung and Christopher Wong.

An interim double bottom appears to be forming

“Daily momentum is slightly bullish while RSI fell. An interim double bottom appears to be forming – we continue to watch price action. Resistance at 101.10 (21 DMA), 101.90. Support at 100.20 levels (interim double bottom ).”

“This week, we look at the PCE underlying (Friday). A higher figure would rekindle fears of second-round inflation risks, especially as the Fed is guiding toward anticipated rate cuts. We are also keeping an eye on end-of-quarter flows that may distort near-term price action.”

Source: Fx Street

You may also like