Ahead of today's release of US CPI and the upcoming rate decisions by the ECB and BOJ, the dollar index has stabilised slightly this week, although the broader picture remains one of consolidation with a downside bias.
The failure to break above the 100.00–100.40 resistance zone in November — an area that also capped gains in August — reinforced a pattern of lower highs and lower lows.
Since then, the index has broken below former support at 99.00 and 98.60, both of which now act as near-term resistance. As long as price remains below these levels, downside risks remain dominant despite recent stabilisation.
Initial support sits around 98.00, close to the 61.8% Fibonacci retracement at 97.81. A sustained break lower would expose the 97.00 level, with the next key support zone around the July–September lows near 96.20–96.40. Overall, rallies continue to look corrective unless the index can reclaim 99.00 decisively.
By Fawad Razaqzada, market analyst with FOREX.com
The failure to break above the 100.00–100.40 resistance zone in November — an area that also capped gains in August — reinforced a pattern of lower highs and lower lows.
Since then, the index has broken below former support at 99.00 and 98.60, both of which now act as near-term resistance. As long as price remains below these levels, downside risks remain dominant despite recent stabilisation.
Initial support sits around 98.00, close to the 61.8% Fibonacci retracement at 97.81. A sustained break lower would expose the 97.00 level, with the next key support zone around the July–September lows near 96.20–96.40. Overall, rallies continue to look corrective unless the index can reclaim 99.00 decisively.
By Fawad Razaqzada, market analyst with FOREX.com
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.