US Dollar Index Technical Analysis: Greenback bulls keep the market above the 95.00 mark after US NFP

The US Dollar Index (DXY) is trading above its 50, 100 and 200-day simple moving averages within a slightly ascending channel suggesting that the main trend is bullish.
DXY has regained some of the lost ground in the last two days but the market will need to break above the 95.65 resistance level in order to reach 97.00, the 2018 high. The move up today was attributed to a better than anticipated Nonfarm Payrolls (NFP) for August at 201K vs. 191K expected.
A bear breakout below 94.43 would invalidate the bullish bias.

Flavio Tosti Independent Analyst

DXY daily chart

Spot rate: 95.41
Relative change: 0.41%
High: 95.46
Low: 94.88

Trend: Bullish

Resistance 1: 95.52 August 6 high
Resistance 2: 95.65 July 19 high
Resistance 3: 96.00 figure
Resistance 4: 97.00, 2018 high

Support 1: 95.24 July 13 high
Support 2: 95.00 figure
Support 3: 94.91 July 27 high
Support 4: 94.43 August 28 swing low

Author

Flavio Tosti

Independent Analyst

EUR/USD revisits 1.1780, or daily lows

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to reach daily troughs on Thursday. The pair’s decline comes in response to a sudden bout of USD strength amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.