DXY Index Technical Analysis:
- Support level: 92.17.
- Resistance level: 93.86.
- DXY Index tests the support level 92.38 (Daily Chart).
- DXY Index trades above the bearish trend line and the support level 92.38.
- In case the DXY Index breaking the support level, this will push the index to trade in a downward path, therefore, we expect the index to test lower support levels.
- DXY Index is positive as long as it is trading above the support level, and accordingly, we expect the index to trades in an upward path and test the resistance level.
- DXY Index succeeded in breaking through the bearish trend line and trade above it, which is a positive thing technically.
- DXY Index breaking through the resistance level and close above it pushes the index to trade positively higher towards other resistance levels.
DXY Index Fundamental Analysis:
- Unemployment and employment data in the United States witnessed a bit of fluctuation during the third quarter, between positive at one point and negative at other times.
- The increase in the US Consumer Spending rate to 1.9% in July is considered positive for the US Dollar Index (DXY), as it is the main engine of the US economy.
- US Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole was tending toward somewhat pessimistic, according to economists and analysts.
- The ambiguity is still prevailing on the stimulus package that was being discussed in the halls of the US Congress during August.
- The decrease in the rates of new infections with Coronavirus (Covid-19) in the United States during the second half of last August may push the DXY index higher, where large countries within the European Union are witnessing a remarkable increase in the rates of infection with the virus.