- The dollar index trades 0.12% lower on Friday.
- The risk sentiment improved during the US session but the dollar remains mixed.
Dollar index 4-hour chart
The dollar index is in a clear downtrend looking at the chart below. On Friday, the price has been very stubborn and now it does look like a base formation is building. The orange support level at 96.34 was tested again on Thursday but the price bounced back. Once again the price moved lower in today's (Friday) session but the market caught a bid even before it could reach the zone.
The dollar basket in the medium term is still making lower highs and lower lows. A break of the wave low of 96.23 would be the confirmation that this trend is set to continue lower. If this is the case then the low of on the chart would be under threat.
The indicators are looking bearish but the MACD histogram is green. The main signal lines are still under the zero area indicating that the downtrend is not over just yet. The Relative Strength Index is still under the 50 line and there is space for a move into the oversold area. If the support levels do give way then the indicator could move into oversold zones once again.
-637300051854807784.png)
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
GBP/USD clings to recovery gains near 1.2600 ahead of BoE rate decision
GBP/USD holds ground near 1.2600 after declining more than 1% following the Federal Reserve’s hawkish cut on Wednesday. The Pound Sterling gains upward support as the Bank of England is anticipated to keep interest rates unchanged later in the day.
EUR/USD retakes 1.0400 amid the post-Fed recovery
EUR/USD is recovering ground to near 1.0400 in the European session on Thursday. The pair corrects higher, reversing the hawkish Fed rate cut-led losses. Meanwhile, the US Dollar takes a breather ahead of US data releases.
Gold price recovers further from one-month low, climbs to $2,620 amid risk-off mood
Gold price attracts some haven flows in the wake of the post-FOMC sell-off in the equity markets. The Fed’s hawkish outlook lifts the US bond yields to a multi-month high and might the XAU/USD. Traders now look to the US Q3 GDP print for some impetus ahead of the US PCE data on Friday.
BoE expected to stand pat, highlighting gradual approach toward lowering interest rate
The Bank of England is set to keep the interest rate on hold, hinting at 2025 action. UK inflation accelerated further in November, albeit within expectations. GBP/USD trades within a well-limited 200 pips range ahead of the announcement.
Sticky UK services inflation to come lower in 2025
Services inflation is stuck at 5% and will stay around there for the next few months. But further progress, helped by more benign annual rises in index-linked prices in April, should see ‘core services’ inflation fall materially in the spring.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.