"The index holding steady at the 97.00 level highlights the psychological importance of this support as the first line of defense against renewed selling pressure. However, the continued movement within a descending channel and the weakening short-term momentum raise questions about the dollar's ability to maintain this stability for long. The nine-day exponential moving average (EMA) at 97.32 remains a key barrier to any upward attempt, making it a critical near-term test."
"A clear daily close above this level could restore gradual confidence and raise the odds of targeting the upper boundary of the descending channel at 97.90, which aligns closely with the 50-day EMA at 98.03. While this scenario is possible, it remains conditional on a tangible improvement in market sentiment and stronger-than-expected U.S. economic data. Should the index fail to break through 97.32, the dollar could quickly come under renewed pressure, retesting 96.22, and possibly 95.10 at the lower channel support."
The U.S. Dollar Index sits at the 97.00 support level, serving as a psychological first line of defense against renewed selling pressure. The index remains inside a descending channel with weakening short-term momentum, challenging the dollar's ability to hold this level. The nine-day EMA at 97.32 is a near-term resistance; a daily close above it could increase odds of moving toward the channel upper boundary near 97.90 and the 50-day EMA at 98.03, conditional on improved sentiment or stronger U.S. data. Failure to breach 97.32 could see a retest of 96.22 and possibly 95.10. The 14-day RSI below 50 signals a prevailing bearish bias, suggesting any rebound may be fragile without clearer macroeconomic improvement or monetary policy shifts. Heightened anticipation over the U.S. interest rate path increases vulnerability to intraday volatility.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]