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  • The Dollar Index (DXY) is holding above 96.04 (38.2% Fib R of 103.82/88.25).
  • US midterm elections are expected to produce a split Congress.
  • A Republican majority in both chambers could put a bid under the greenback.

The dollar index (DXY) is currently trading at 96.40, having defended the 38.2 percent Fibonacci support of 96.04 on Friday.

The greenback is trading in a sideways manner above the key Fib, likely due to caution ahead of the US midterm elections, which are expected to produce a split Congress – Democrats to take House and Republicans to retain the Senate.

The narrative in the market is that a Republican majority in both Chambers may embolden Trump to push for more fiscal stimulus. As a result, the greenback may pick up a bid if Republicans retain both House and the Senate.

On the other hand, the dollar may take a beating if the Democrats secure a majority in both Chambers and use their majority to investigate Trump’s Russian ties and financial affairs.

Dollar Index Technical Levels

Dollar Index Spot

Overview:
       Last Price:  96.4
       Daily change:  5.0  pips
       Daily change:  0.0519%
       Daily Open:  96.35
Trends:
       Daily SMA20:  96.01
       Daily SMA50:  95.38
       Daily SMA100:  95.2
       Daily SMA200:  93.21
Levels:
       Daily High:  96.69
       Daily Low:  96.25
       Weekly High:  97.2
       Weekly Low:  95.99
       Monthly High:  97.2
       Monthly Low:  94.79
       Daily Fibonacci 38.2%:  96.42
       Daily Fibonacci 61.8%:  96.52
       Daily Pivot Point S1:  96.17
       Daily Pivot Point S2:  95.99
       Daily Pivot Point S3:  95.73
       Daily Pivot Point R1:  96.61
       Daily Pivot Point R2:  96.87
       Daily Pivot Point R3:  97.05