US Dollar steady ahead of PPI data
US Dollar Index Technical Analysis: PPI blip on the radar
The US Dollar Index (DXY) is getting torn between two forces. One element is that the high beta and carry traders are regaining strength after their substantially weak performance since the beginning of August. Though, the US Dollar is gaining against the Japanese Yen in the meantime.The Yen accounts for 13.6% of the DXY against no weighting at all for the Australian Dollar or the Polish Zloty, which paints a standstill picture on the DXY chart.
Still, the first level to recover, which gains importance every day, is 103.18, a level held on August 2 though snapped on August 5 in the Asian hours. Once the DXY closes above that level, next up is 104.00, which was the support from June. If the DXY can return above that level, the 200-day Simple Moving Average (SMA) at 104.15 is the next resistance to look out for.
On the downside, the oversold condition in the Relative Strength Index (RSI) indicator has eased in the daily chart and holds room again for a small leg lower. Support nearby is the March 8 low at 102.35. Once through there, pressure will start to build on 102.00 as a big psychological figure before testing 101.90, which was a pivotal level in December 2023 and January 2024.
REGISTRATION LINK 👇🏻
https://one.exnesstrack.net/boarding/sign-up/a/uq2cbl5o/?campaign=24533
