US Dollar Index extends its losses for the fourth successive session on Monday. (Pivot Orderbook analysis)
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- US Dollar Index extends its losses for the fourth successive session on Monday.
- The Greenback lost ground after Ex-fed James Bullard suggested the Fed to reducing rates in March.
- Improved PPI suggests that the Fed could avoid rate adjustment in the upcoming meeting.
The pair currently trades last at 104.25.
The previous day high was 104.67 while the previous day low was 104.17. The daily 38.2% Fib levels comes at 104.36, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.48, expected to provide resistance.
The US Dollar Index (DXY) continues its downward trend for the fourth consecutive session, slipping to around 104.20 during the Asian trading hours on Monday. However, the improved Producer Price Index (PPI) from the United States bolstered the US Dollar (USD), yet closed the session with losses. The market expects minimal movement in the Greenback following the President’s Day bank holiday.
The US Dollar (USD) faced downward pressure as US Treasury yields saw a volatile session on Friday, ultimately ending the day under pressure. This movement could be attributed to former Fed official James Bullard’s suggestion that the Fed should contemplate lowering interest rates in the March meeting to prevent hindering economic activity due to higher rates.
Market sentiment leans towards the idea that the US Federal Reserve will refrain from rate cuts in March and May. According to the CME FedWatch Tool, there is approximately a 52% likelihood of a 25 basis points (bps) rate cut in June.
The US Producer Price Index (PPI) showed an annual growth of 0.9%, exceeding the anticipated 0.6% and 1.0% prior. Additionally, the month-over-month improvement was 0.3%, against the previous decline of 0.1%. In January, the US Core Producer Price Index (YoY) rose by 2.0%, surpassing the expected 1.6% and the previous 1.7%.
Meanwhile, the month-on-month (MoM) data reported a 0.5% rise, against the predicted 0.1% rise from the prior decline of 0.1%. However, the preliminary Michigan Consumer Sentiment Index improved to 79.6 from the previous figure of 79.0, falling short of the anticipated 80.0 figure.
Technical Levels: Supports and Resistances
EURUSD currently trading at 104.25 at the time of writing. Pair opened at 104.29 and is trading with a change of -0.04 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 104.25 |
| 1 | Today Daily Change | -0.04 |
| 2 | Today Daily Change % | -0.04 |
| 3 | Today daily open | 104.29 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 103.88, 50 SMA 102.98, 100 SMA @ 104.1 and 200 SMA @ 103.68.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 103.88 |
| 1 | Daily SMA50 | 102.98 |
| 2 | Daily SMA100 | 104.10 |
| 3 | Daily SMA200 | 103.68 |
The previous day high was 104.67 while the previous day low was 104.17. The daily 38.2% Fib levels comes at 104.36, expected to provide resistance. Similarly, the daily 61.8% fib level is at 104.48, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 104.08, 103.87, 103.57
- Pivot resistance is noted at 104.58, 104.88, 105.09
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 104.67 |
| Previous Daily Low | 104.17 |
| Previous Weekly High | 104.98 |
| Previous Weekly Low | 103.90 |
| Previous Monthly High | 103.82 |
| Previous Monthly Low | 101.30 |
| Daily Fibonacci 38.2% | 104.36 |
| Daily Fibonacci 61.8% | 104.48 |
| Daily Pivot Point S1 | 104.08 |
| Daily Pivot Point S2 | 103.87 |
| Daily Pivot Point S3 | 103.57 |
| Daily Pivot Point R1 | 104.58 |
| Daily Pivot Point R2 | 104.88 |
| Daily Pivot Point R3 | 105.09 |
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