US Dollar benefits from mild risk-off mood ahead of Nvidia earnings
US Dollar Index Technical Analysis: Nvidia moving forex
The US Dollar Index (DXY) is seeing a very odd driver dictating direction. The assumption is very easy: should Nvidia earnings beat expectations again, a new wave of risk-on flows will likely push equities higher and the US Dollar lower. If earnings fall in line with expectations or below them, the US Dollar is expected to rally and risk-off flows would send equities south.
For a recovery, the DXY faces a long road ahead. First, 101.90 is the level to reclaim. A steep 2% uprising would be needed to get the index to 103.18 from the current 101.00. A very heavy resistance level near 104.00 not only holds a pivotal technical value, but it also bears the 200-day Simple Moving Average (SMA) as the second heavyweight to cap price action.
On the downside, 100.62 (the low from December 28) tries to hold support, although it looks rather feeble. Should it break, the low from July 14, 2023, at 99.58 will be the ultimate level to look out for. Once that level gives way, early levels from 2023 are coming in near 97.73.
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