The DXY has printed a fresh monthly high below 109.56 amid a positive risk impulse. (Pivot Orderbook analysis)

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• The DXY has printed a fresh monthly high below 109.56 amid a positive risk impulse.
• An absence of a risk aversion theme has pushed 10-year US Treasury yields lower to 4%.
• The release of the US GDP and Durable Goods Orders data will keep the DXY on the tenterhooks.

The pair currently trades last at 109.57.

The previous day high was 111.13 while the previous day low was 109.63. The daily 38.2% Fib levels comes at 110.2, expected to provide resistance. Similarly, the daily 61.8% fib level is at 110.56, expected to provide resistance.

The US dollar index (DXY) has recorded a fresh monthly high at 109.56 in Tokyo session as the risk appetite of the market participants is improving significantly. The DXY has shifted into a negative trajectory after surrendering the critical support of 110.00 and is expected to deliver more weakness ahead.

The risk profile remained upbeat on Wednesday despite a vertical fall in S&P500 after the downfall in tech stocks failed to align with the minor drop in other sectors.

A sheer optimism in market sentiment has trimmed the alpha generated by US government bonds. The returns on US Treasuries have dropped sharply despite sustained bets for a hawkish stance by the Federal Reserve (Fed). The 10-year US Treasury yields have slipped to 4% after printing a 14-year high of 4.38% last week. Inflationary pressures have not displayed signs of exhaustion yet, therefore, the odds of a bigger rate hike announcement by the Fed are rock solid.

As per the CME FedWatch tool, the chances of a 75 basis point (bps) rate hike announcement by the Fed stands at 92.5%.

A key trigger for decisive movement in the global markets will be the US Gross Domestic Product (GDP) data. According to the projections, the US economy has expanded at a growth rate of 2.4% in the third quarter of CY2022 against the de-growth of 0.6% recorded earlier. A lower print against the projections could accelerate volatility in the DXY.

Apart from that, investors will also focus on the US Durable Goods Orders data. The economic data is seen higher at 0.6% against a drop of 0.2%. In times, when the US core Consumer Price Index (CPI) is continuously accelerating, a rise in demand for durable goods could be supportive for the DXY.

Technical Levels: Supports and Resistances

EURUSD currently trading at 109.57 at the time of writing. Pair opened at 109.69 and is trading with a change of -0.11 % .

The pair is trading below its 20 Daily moving average @ 112.1, below its 50 Daily moving average @ 110.9 , above its 100 Daily moving average @ 108.46 and above its 200 Daily moving average @ 104.03

The previous day high was 111.13 while the previous day low was 109.63. The daily 38.2% Fib levels comes at 110.2, expected to provide resistance. Similarly, the daily 61.8% fib level is at 110.56, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 109.17, 108.65, 107.67
• Pivot resistance is noted at 110.67, 111.65, 112.17

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