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  • Worse-than-expected data in the United States is triggering US Dollar weakness.
  • The level to beat for sellers is the 99.00 figure.  
  • Investors will focus on the ISM Non-Manufacturing Index on Thursday.

DXY daily chart

The US Dollar Index (DXY) is an uptrend above its main daily simple moving averages (DSMAs). This Wednesday, the ADP, the forerunner of the Nonfarm Payrolls scheduled on Friday, disappointed the market with only 135k vs. 140k expected in September. This adds to the already negative sentiment on DXY which started on Tuesday after the ISM Manufacturing PMI came in below expectations at 47.8 vs. 50.1 forecast. This was the worst reading in ten years. Investors will now focus on the ISM Non-Manufacturing Index on Thursday.

DXY four-hour chart

DXY is pulling back down as the market is trading at three-day lows. DXY is challenging the 99.00 figure. A break of the support can expose the 98.85 level and potentially the  98.30 support if the bears gather enough momentum.

DXY 30-minute chart

DXY is under pressure below the main SMAs, suggesting a bearish bias in the short term. Immediate resistance is seen at the 99.10 and 99.30 price levels.

Additional key levels