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  • DXY (US Dollar Index) is losing steam after reaching new 2019 highs.  
  • Key support is now at 98.94, followed by 98.68 on the way down.  
  • Big disappointment from ISM Manufacturing PMI, strong negative signal for US jobs report
 

DXY daily chart

 
DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DSMAs) as the market printed a new 2019 high at 99.38. FXStreet’s owned Jordi Martinez explains: “The Employment Index in the ISM Manufacturing PMI survey plunged in August to 47.4, falling well below the neutral 50 level from the 51.2 printed in July.” Regarding the Nonfarm Payrolls, he also adds: “This report shows a very strong negative signal for next Friday’s US employment report”.

DXY 4-hour chart

 
This Tuesday, the Greenback lost some steam as it was unable to reach the 99.45 level. Bulls will have to reclaim the 99.28 and 99.45 resistances if they want to continue their ascent.
 

 

DXY 30-minute chart

 
DXY decelerated to 98.94 support while trading below the 50 and 100 SMAs, suggesting a correction down in the short term. Bears will need to overcome the 98.94 and the 98.68 support levels.  
 

Additional key levels