US Dollar Index aims an establishment above 105.00 as Fed rate hike ghost returns
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- The DXY is hoping for a break above 105.20 on advancing hawkish Fed bets.
- Investors are ignoring the one-time slowdown in the US Inflation rate.
- A higher US Michigan CSI will strengthen the DXY bulls further.
The pair currently trades last at 105.12.
The previous day high was 105.46 while the previous day low was 104.64. The daily 38.2% Fib levels comes at 104.95, expected to provide support. Similarly, the daily 61.8% fib level is at 105.15, expected to provide resistance.
The US dollar index (DXY) extended its gains to near 105.20 after sensing an intense buying interest while revisiting the six-week low at 104.64. The asset defended itself from refreshing a six-week low below 104.64. Now, the DXY has turned sideways but remains above 105.00 and is expected to record more gains on violating the immediate hurdle of 105.20.
Markets were cheering a downward shift in the US Consumer Price Index (CPI), which landed at 8.5% lower than the expectations of 8.7% and the prior release of 9.1%. Now, investors have started focusing on the extent of the interest rate hike by the Federal Reserve (Fed) in its September monetary policy meeting.
A one-time slowdown in the US inflation is not sufficient to have a ball as price pressures are still extremely deviated from the desired levels. Therefore, the Fed will continue on its path of accelerating interest rates. For the record, the extent of hawkish guidance will trim abruptly.
The Michigan Consumer Sentiment Index (CSI) data is expected to improve to 52.2 from the prior release of 51.5. A consecutive improvement is expected in the confidence of consumers after the data slipped to 50 for the first time in the past 20 years. An occurrence of the same will display that consumers have started showing their confidence in the economy and the overall demand will improve going forward.
Technical Levels: Supports and Resistances
EURUSD currently trading at 105.12 at the time of writing. Pair opened at 105.11 and is trading with a change of 0.01 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 105.12 |
| 1 | Today Daily Change | 0.01 |
| 2 | Today Daily Change % | 0.01 |
| 3 | Today daily open | 105.11 |
The pair is trading below its 20 Daily moving average @ 106.5, below its 50 Daily moving average @ 105.5 , above its 100 Daily moving average @ 103.51 and above its 200 Daily moving average @ 99.93
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 106.50 |
| 1 | Daily SMA50 | 105.50 |
| 2 | Daily SMA100 | 103.51 |
| 3 | Daily SMA200 | 99.93 |
The previous day high was 105.46 while the previous day low was 104.64. The daily 38.2% Fib levels comes at 104.95, expected to provide support. Similarly, the daily 61.8% fib level is at 105.15, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 104.68, 104.25, 103.86
- Pivot resistance is noted at 105.5, 105.89, 106.32
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 105.46 |
| Previous Daily Low | 104.64 |
| Previous Weekly High | 107.43 |
| Previous Weekly Low | 105.54 |
| Previous Monthly High | 109.29 |
| Previous Monthly Low | 104.69 |
| Daily Fibonacci 38.2% | 104.95 |
| Daily Fibonacci 61.8% | 105.15 |
| Daily Pivot Point S1 | 104.68 |
| Daily Pivot Point S2 | 104.25 |
| Daily Pivot Point S3 | 103.86 |
| Daily Pivot Point R1 | 105.50 |
| Daily Pivot Point R2 | 105.89 |
| Daily Pivot Point R3 | 106.32 |
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