US dollar recover to near flat territory ahead of Fed’s Kashkari rate hike.
The US Dollar Index returns to 104.50.
Neel Kashkari president of the Federal Reserve Bank of Minneapolis, helped the US Dollar (USD) rebound after the US opening bell on Tuesday. Kashkari of the Federal Reserve suggested that a rate hike was still possible. This contradicts various comments made by Fed speakers last week. Markets should also keep in mind that Fed Governor Kashkari will not vote this year.
In terms of economic data, the US Treasury will have four bond auctions. In many maturities throughout the yield curve. And three US Federal Reserve (Fed) speakers are scheduled to speak on Tuesday. Kashkari of the Federal Reserve surprises investors by hinting at a rate hike.
Technical Analysis :
The US Dollar Index (DXY) is playing a risky game on Tuesday. Pushing key support levels before retreating for the third day in a row. Before the US opening bell, the DXY is testing the 200-day Simple Moving Average (SMA) at 104.41. With the 100-day SMA at 104.32. There is plenty of opportunity for a plummet if markets begin to unwind their dollar long holdings.
On the upside, the DXY index needs to recapture important levels lost last week. Including the 55-day Simple Moving Average (SMA) at 104.88 and the 105.00 big round milestone. Further up, the levels to consider are 105.12 and 105.52.
On the downside, the 200-day SMA is at 104.41, and The 100-day SMA at 104.32 is the last line of defense. Once that threshold is snapped, an air pocket is created between 104.30 and 103.00. If the US Dollar’s drop continues, the March low of 102.35 and the December low of 100.62 should be considered.
