- US dollar index (DXY) is consolidating in the 99.00/100.00 zone.
- The level to beat for bulls is the 100.00 handle.
DXY daily chart chart
Last week, DXY experienced its largest weekly decline since April 1986 as the greenback challenged the 50-day simple moving average on the daily chart.
DXY four-hour chart
DXY is trying to find some footing above the 98.25 level and the main SMAs as a close above the 100.00 psychological level remains for now illusive. However, a move beyond the above-mentioned level can open the doors to the 100.50 and 101.50 resistances on the way up. On the flip side, bears would need to have a daily close below the 98.00 figure to extend the bearish leg from last week.
Additional key levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD holds hot Australian CPI-led gains above 0.6500
AUD/USD consolidates hot Australian CPI data-led strong gains above 0.6500 in early Europe on Wednesday. The Australian CPI rose 1% in QoQ in Q1 against the 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY sticks to 34-year high near 154.90 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price finds support near $2,320 as US Dollar struggles ahead of data
Gold price is attempting a bounce, having found support near $2,320 in Asian trading on Wednesday. Gold price seems to benefit from the risk-rally-led weakness in the US Dollar. Downbeat S&P Global US preliminary PMIs also weigh on the Greenback, offering Gold buyers some comfort.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.