The U.S. dollar index was flat yesterday after the number of Americans applying for unemployment benefits rose to an unexpected five-month high. The biggest move within the basket was against the Aussie dollar, which fell 1% to its lowest in nearly a month after an abrupt weakening of the Australian labor market.
The last dip is likely to be limited to 98 while the near-term uptrend remains intact.
So far, USD is on track for a positive close in November, a month which has historically been favorable to bulls. Yet nothing moves in a straight line and it appears bears could also have their say.
Given the strength of bullish momentum from the 97.00 support one, the bias is for a minor pullback for testing 98.39/45. That area includes the weekly high and 50% Fibo retracement from 99.67 to 97.11 on daily chart. This is a potential trigger point for an acceleration to the upside and for DXY to head towards 98.65 resistance (15 Oct.'s high).
DXY now is challenging the 98.10 support level and the 200-day SMA on the four-hour chart. So, a dip to the 98.00 handle cannot be ruled out. In case of clear break bellow that level, the next support is 100-day SMA on H4 chart at 97.85.
The economic calendar also shifts focus today to the U.S Dollar. Following Powell’s positive outlook on the economy, retail sales will need to impress… On the geopolitical front, updates on trade talks between the U.S and China will continue to influence.
The last dip is likely to be limited to 98 while the near-term uptrend remains intact.
So far, USD is on track for a positive close in November, a month which has historically been favorable to bulls. Yet nothing moves in a straight line and it appears bears could also have their say.
Given the strength of bullish momentum from the 97.00 support one, the bias is for a minor pullback for testing 98.39/45. That area includes the weekly high and 50% Fibo retracement from 99.67 to 97.11 on daily chart. This is a potential trigger point for an acceleration to the upside and for DXY to head towards 98.65 resistance (15 Oct.'s high).
DXY now is challenging the 98.10 support level and the 200-day SMA on the four-hour chart. So, a dip to the 98.00 handle cannot be ruled out. In case of clear break bellow that level, the next support is 100-day SMA on H4 chart at 97.85.
The economic calendar also shifts focus today to the U.S Dollar. Following Powell’s positive outlook on the economy, retail sales will need to impress… On the geopolitical front, updates on trade talks between the U.S and China will continue to influence.
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Could the bulls defend the 98.00 support?
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