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  • The index sheds some ground and is testing lows in the 94.85/80 band.
  • US 10-year yields linger over the 2.99%-3.00% area so far.
  • NY Empire State manufacturing index next of relevance in the docket.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors, has started the week on the defensive and is now probing lows in the 94.80 region.

US Dollar Index looks to data

The index is fading part of last Friday’s up move to the boundaries of the critical 95.00 the figure amidst some recovery in the sentiment surrounding the risk-associated complex.

However, the index should remain vigilant on the developments from the US-China trade dispute, as the White House once again could announce further tariffs on US imports from China at some point this week. In the same line, Chinese retaliation could also collaborate with the escalating effervescence.

In the meantime, speculators remained USD net long during the week ended on September 4, taking their positions to 2-week highs as per the latest CFTC report.

Looking ahead, and with investors apparently leaving behind the disappointing CPI figures published last week, the regional manufacturing gauge by the NY Empire State index is only due later in the NA calendar.

US Dollar Index relevant levels

As of writing the index is losing 0.23% at 94.76 facing the next support at 94.36 (low Sep.14) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26). On the flip side, a break above 95.00 (high Sep.14) would target 95.08 (21-day SMA) en route to 95.74 (high Sep.4).

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