US Dollar Index (DXY) Advances to Set New Weekly Highs

Free $100 Forex No-Deposit Bonus

The US Dollar Index (DXY) spiked on Friday to set new weekly highs of 97.58 following a series of events that signaled a bullish outlook of the US economy. The Dollar Index shot from 97.00 in the afternoon hours of the US session to close the session at 97.58, which is a new 11-day high.

The USDX has been on an upward movement this week following last week’s losses. The DXY has rallied from about 96.60 on Wednesday to 97.58 on Friday adding nearly 100 basis points in three days.

The US Dollar Index (DXY) Fundamentals Overview

From a fundamental perspective, the US Dollar Index (DXY) is trading at the back of a positive week in terms of US economic data. This is contrary to last week’s events that triggered the decline. This week, the USDX boasts strength from strong Retail sales, which beat expectations with 0.5% versus 0.4% forecast.

The CFTC USD NC Net Positions also declined to $54.9k versus $89.9k in the previous week, which again boosts the greenback against a basket of rival currencies. Business Inventories posted an improvement of 0.5% versus 0.0% in the previous period again signaling positivity towards the US economy.

The US Dollar Index (DXY) Technical Analysis (the 60-min Chart)

From a technical perspective, the US Dollar Index appears to be on recovery after last week’s losses. The DXY appears to be recouping the losses in a similar fashion to the way it plunged last week. This sets it up well for the bulls who look to pounce on the expected gains.

The bulls will target profits at 97.80 in the short-term or 98.21 intermediate. On the other hand, the bears will be hoping for a pullback towards 97.35 in the short-term or slightly lower at 97.00.

The US Dollar Index (DXY) Technical Analysis (the Daily Chart)

In the Daily chart, the USDX appears to be trading within an ascending channel, which indicates a bullish bias. It also appears to enjoy strong support from both the 100-day and the 200-day moving average lines that are just below the current position of the DXY.

And when you look at the Relative Strength Index (RSI) indicator down below, the upward momentum appears to be strong since the US Dollar Index is yet to hit overbought levels.

In summary, the US Dollar Index (DXY) looks strongly bullish going into next week. And with both the short-term and the long-term outlooks appearing to favor the bulls, opportunities could be limited for the bears.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.