- The top of DXY it appears limited around the 93.00 area.
- Democrats win, the pfizer vaccine keeps the dollar under pressure.
- Mortgage applications from the MBA they only expire in the US data space.
The dollar alternates gains with losses in the area of 92.70 when tracked in the US Dollar Index (DXY) on Wednesday.
The US Dollar Index remains at a high of 93.00
The index is now moving within a range-limited topic after Monday’s strong advance, although the near 93.00 They have appeared as a tough nut to crack for the dollar bulls at the moment.
Meanwhile, the dollar remains under scrutiny, as global market participants continue to adjust to the prospects of a US presidency. Biden, as well as the idea that a coronavirus vaccine is expected to come out in a (very?) short time frame, while supporting the vision of a strong (and faster) recovery after the pandemic.
On the U.S. agenda, mortgage applications for MBA they will be the only release on Wednesday as activity in the US markets will slow due to Veterans Day (Federal).
What to look for in the USD
The DXY rally appears to be limited so far by the 93.00 area. Meanwhile, the dollar remains focused on the post-election scenario in the US, where all eyes are on the (still) president. Trump and its potential attempts to contest some results in various states. From a more general point of view, the impact of second wave of the pandemic in the global economy could favor the occasional resurgence of risk aversion and thus lend some support to the dollar, while additional progress related to anti-virus vaccines. COVID-19 they should support momentum in the risk complex. Going forward, the Federal Reserve’s “lower for longer” stance is expected to continue to limit potential serious DXY rallies.
Relevant levels of the US dollar index
Right now, the index is losing a 0.02% in 92.69 and faces immediate containment at 92.13 (November 9 monthly low), followed by 91.92 (23.6% Fibo from the 2017-2018 drop) and then 91.80 (May 2018 monthly low). On the other hand, an outbreak of 92.97 (November 10 monthly high) would open the door to 93.29 (55-day SMA) and finally 94.30 (November 4 monthly high).
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Credits: Forex Street
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