- The DXY deflates after challenging the 2021 highs beyond 96.20.
- US yields remain depressed, risk aversion bolsters the dollar.
- Clarida from the FOMC, Waller will speak later in the American session.
The USD came under some pressure after challenging the 2021 highs beyond 96.20 when measured by the US dollar index (DXY).
The US dollar index closes its fourth consecutive week with gains
The index remains the offered bias unchanged, as risk-off mood dominates sentiment in global markets at the end of the week.
The dollar rally after two consecutive daily pullbacks appears driven solely by renewed weakness in the risk space, while US yields further extend the recent bearish move. That said, the index is on track to close its fourth consecutive week in positive territory, while gaining more than 4.6% from September lows in the 92.00 zone.
Later in the session, the permanent voters of the FOMC, R. Clarida (moderate) and C. Waller (centrist) will make statements.
Technical levels
Now, the index advanced 0.37% to 95.87 and a break above 96.24 (November 17, 2021 high) would open the door to 97.00 (round level) and then 97.80 (June 30, 2020 high). On the other hand, the next descending barrier emerges at 94.96 (weekly minimum of November 15) followed by 94.56 (monthly maximum of October 12) and finally 93.87 (weekly minimum of November 9).
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