The US Dollar
-DXY- still attracts investors and traders’ attention in the global Financial Markets, as it is trading close to the psychological level of 100.00. The US dollar index is positive as long as it is trading above 99.20 level. The index is currently trading at 99.58 by 8:07 GMT.
- The US Dollar Index -DXY- is positive above 99.207 (support).
- In case the US dollar index -DXY- passed the level of 99.59 (resistance), this will be a positive sign for the index.
- In case the US Dollar -DXY- exceeded the last top of last week, this will increase the index’s positivity.
- The US dollar index -DXY- still trades within the bullish channel’s range, which helps the index to maintain the bullish trend.
- In case the US Dollar trades outside of the bullish channel’s range, this will be a sign to index beginning sideways or bearish path.
- Fed members believe the interest rates at an appropriate level.
- The Fed members have voted unanimously to keep interest rates unchanged at their current level.
- Fed members believe that the current monetary policy supports the growth of the American economy at a moderate pace.
- Fed members see the Quantitative Easing policy and progress in trade issues solutions are supporting the growth of the US economy.
Traders and investors should consider the support and resistance levels shown in the chart where if the index exceeds some of these levels and trades above it, this will be a positive indicator.
It is also important to consider the possibility of a price reversal mentioned levels.
As long as the price movement of the US dollar index -DXY- trades inside the bullish channel’s range, this will be considered as a positive signal technically, however, in case of the price movement trades outside of the channel, this will push the index to trade-in a sideways or downside range.
It is important to keep watching reliable news and media sources about the Coronavirus (Covid-19), as it is currently the main driver of the market.