U.S. Dollar IndexShort
Will the job data impair the US dollar gain?
Macro theme:
- The dollar remained steady despite short-term volatility, reflecting mixed economic data. US Sep Retail Inventories and Oct Consumer Confidence exceeded forecasts, while Sep Job Openings fell short.
- Treasury yields reached multi-month highs early but declined following a strong seven-year auction.
- With the US job report—the last before the FOMC meeting—approaching, storms and strikes could complicate interpreting the data, introducing further uncertainty around the dollar’s direction.
Technical theme:
- DXY is consolidating in a small range at the top and looks stretched. This is vulnerable to a potential mean reversion. The price is trading away from both EMAs.
- If DXY extends its gain above the previous swing high at 104.60, the index may rise to 106.00 resistance.
- On the contrary, if DXY closes below 104.00 support, the index may decline to retest 103.45 support.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The dollar remained steady despite short-term volatility, reflecting mixed economic data. US Sep Retail Inventories and Oct Consumer Confidence exceeded forecasts, while Sep Job Openings fell short.
- Treasury yields reached multi-month highs early but declined following a strong seven-year auction.
- With the US job report—the last before the FOMC meeting—approaching, storms and strikes could complicate interpreting the data, introducing further uncertainty around the dollar’s direction.
Technical theme:
- DXY is consolidating in a small range at the top and looks stretched. This is vulnerable to a potential mean reversion. The price is trading away from both EMAs.
- If DXY extends its gain above the previous swing high at 104.60, the index may rise to 106.00 resistance.
- On the contrary, if DXY closes below 104.00 support, the index may decline to retest 103.45 support.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.