Market Analytics and Technical Considerations
Key Points
- The index surpasses the 106.00 barrier, continuing the recovery.
- The upward impetus is further supported by higher US yields.
- On Friday, it seems like the risk complexity is in a depressing disposition.
At the end of the week, the USD Index (DXY), which compares the value of the dollar to a number of its main rivals, manages to move higher above the 106.00 benchmark.
The USD Index rises to 106.00 and beyond.
The dollar receives much-needed oxygenation from the risk-averse cosmos, and the index has fairly noticeably risen from a bottom of 105.60 reached in the previous session.
The reasonable increase in US yields across the curve, which simultaneously manage to regain some calm following the post-Minutes weakening, also seems to be helping the corrective move in the dollar.
What to watch out for about USD
Around 105.60 (November 24), the weekly decline in the dollar appears to have encountered resistance, leading to a slight comeback that followed in line with the some profit-taking actions in the risk-related sector.
The likelihood of a slower speed of the Fed’s normalization process in the short term will likely depend significantly on impending results in US fundamentals, even while hawkish Fedspeak keeps the pivot story in the freezer.
Relevant USD Index levels
The index is currently up 0.68% at 106.34 and will encounter imminent resistance at 107.99 (the week’s top on November 21), then 109.15 (the 100-day SMA), and finally 110.48. (55-day SMA). On the contrary hand, a break of 105.34 (the monthly bottom set on November 15) would lead to 105.32 (the 200-day SMA) and then 104.63. Month low
