US Dollar Index outlook: Dollar edges higher ahead of release of key US economic data on Thursday
|US Dollar Index
The dollar index bounced on Wednesday, after 200DMA (103.52) repeatedly contained dips in recent sessions.
Reversal pattern is forming on daily chart and 14-d momentum is ascending from negative territory and pressuring the centreline, contributing to positive signals, which will still look for additional confirmation on daily close above cracked Fibo barriers at 104.00/02 (converged 10/20DMA’s / 50% retracement of 104.85/103.19 bear-leg).
However, firmer direction signals are expected to come from releases of inflation data from the US on Thursday, which will give more details about Fed’s plans to start cutting interest rates.
Near-term action is expected to keep bullish bias while holding above 103.80 zone (broken Fibo 38.2% / daily Tenkan-sen).
Res: 104.02; 104.22; 104.46; 104.85.
Sup: 103.80; 103.52; 103.19; 102.93.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.