News | Forex Optimum



US Dollar Index Price Analysis: Downside should be corrective only

  • DXY recedes from recent 2021 highs around 94.56.
  • Intermittent dips are seen as buying opportunities.

DXY faces some selling pressure and corrects from Tuesday’s YTD highs in the 94.55/60 band.

The ongoing price action allows the index to keep the buying bias well in place and open the door to further upside in the not-so-distant future. That said, next target emerges at the September 2020 high at 94.74 and the 200-week SMA, today at 94.76. Further north should come the round level at 95.00.

Looking at the broader picture, the constructive stance on the index is seen unchanged above the 200-day SMA at 91.75.

DXY daily chart


You may also be interested:

13:12 22.10.2021
USD/KRW set to recover towards the recent high of 1200/10 – SocGen
USD/KRW has retracted towards first support of daily Ichimoku cloud near 1165. However, economists at Société Générale expect the pair to rebound towards the 1200/10 region. Bounce expected “Only a break below 1165 will mean a deeper down move.” “A rebound is likely towards recent peak at 1200/1210, the 61.8% retracement from 2020.”  
13:06 22.10.2021
USD/CAD flirts with session lows, below mid-1.2300s ahead of Canadian/US data
USD/CAD witnessed fresh selling on Friday and reversed a major part of the overnight gains. Renewed USD weakness turned out to be a key factor that acted as a headwind for the pair. An uptick in oil prices underpinned the loonie and further contributed to the intraday selling. The USD/CAD pair remained depressed through the first half of the European session and was last seen hovering near the lower boundary of its daily trading range, below mid-1.2300s. The pair struggled to capitalize
12:55 22.10.2021
China's Evergrande: Cannot guarantee will continue to meet financial obligations
The main unit of China Evergrande Group, Hengda Real Estate Group Co, announced on Friday that it has not made substantial progress in disposing of the real-estate giant's assets, as reported by Reuters. The group further noted that it cannot guarantee it will be able to continue to meet the financial obligations under contracts. Market reaction This development doesn't seem to be having a significant impact on market sentiment. As of writing, the Dow Futures were flat on the day
Bonuses VIP