US Dollar Index rebounds from six-month low, snaps two-day downtrend. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• US Dollar Index rebounds from six-month low, snaps two-day downtrend.
• Fed announced 50 bps rate increase, showed readiness to keep it higher for long.
• A reassessment of Fed’s rate bias seems favoring US Treasury yields and the greenback.
• Multiple central bank announcements, US Retail Sales eyed for fresh impulse.

The pair currently trades last at 103.91.

The previous day high was 104.18 while the previous day low was 103.44. The daily 38.2% Fib levels comes at 103.72, expected to provide support. Similarly, the daily 61.8% fib level is at 103.9, expected to provide support.

US Dollar Index (DXY) remains mildly bid around 104.00 as it prints the first daily gains in three during the early Thursday morning in Europe. In doing so, the greenback’s gauge versus the six major currencies traces the firmer US Treasury bond yields amid sluggish market sentiment.

That said, the DXY initially failed to cheer the US Federal Reserve’s (Fed) 0.50% interest rate hike and the readiness to keep it higher for long as traders didn’t find anything new from the statements or Fed actions that were unexpected. However, a reassessment of the Federal Open Market Committee’s (FOMC) moves highlights upward revision of inflation forecasts and a cut in the growth forecasts, as well as the 5.1% terminal rate, as the key hawkish actions and propelled the US Treasury bond yields and the DXY.

That said, the US 10-year Treasury bond yields probe a two-day downtrend near 3.50% while the two-year US bond yields also extend recovery from the monthly low while printing the first daily positive in three near 4.25%.

Also likely to have stopped the US dollar’s downside could be the cautious mood ahead of the multiple central bank announcements, including from the Swiss National Bank (SNB), European Central Bank (ECB) and the Bank of England (BOE), etc.

Amid these plays, the S&P 500 Futures remain directionless while the Asia-Pacific shares grind lower.

Moving on, the aforementioned central bank announcements will join the US Retail Sales for November, expected -0.1% MoM versus 1.3% prior, to direct short-term DXY moves.

A one-month-old descending support line, close to 103.50 by the press time, joins the oversold RSI conditions to tease DXY bulls.

Also read: US Dollar Index Price Analysis: Monthly support teases DXY bulls amid oversold RSI

Technical Levels: Supports and Resistances

EURUSD currently trading at 103.91 at the time of writing. Pair opened at 103.63 and is trading with a change of 0.27% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 105.23, 50 SMA 107.42, 100 SMA @ 109.06 and 200 SMA @ 106.4.

The previous day high was 104.18 while the previous day low was 103.44. The daily 38.2% Fib levels comes at 103.72, expected to provide support. Similarly, the daily 61.8% fib level is at 103.9, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 103.32, 103.01, 102.58
• Pivot resistance is noted at 104.06, 104.49, 104.8

[/s2If]
Join Our Telegram Group