US Dollar Index outlook: Increased safe-haven demand lifts Dollar
|US Dollar Index
The dollar remains firm versus the basket of major currencies early Wednesday, boosted by safe-haven demand following the latest escalation in the Middle East.
Two day bounce from strong 100 support zone, hit two-week high and pressuring pivotal barriers at 101.17/24 (consolidation range top / Fibo 23.6% of 105.78/99.84 downtrend), break of which to generate initial reversal signal and open way for stronger recovery.
Break higher to expose targets at 101.80 zone (lower platform) and more significant resistances at 102.11 (base of falling and thickening daily Ichimoku cloud / Fibo 38.2% of 105.78/99.84).
Improving technical picture on daily chart (break above daily Tenkan / Kijun-sen which turned sideways / 14-d momentum emerging into positive territory) supports the notion, along with formation of base at 100 zone and a bear-trap pattern.
Repeated close above daily Kijun-sen (100.84) will be required to maintain bullish bias.
From the fundamental side, growing geopolitical tensions are likely to continue to fuel dollar’s safe-haven appeal, with US labor report for September and non-manufacturing PMI also to be closely watched in coming sessions.
Res: 101.24; 101.84; 102.11; 102.81.
Sup: 100.84; 100.48; 100.00; 99.84.
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.