Dollar Index Technical Update-17th July Forecast
- USD bears pushed the dollar lower on Monday after an earlier rally had the dollar index trading near recent range highs. Price hit resistance around the 83.50 area previous swing high and subsequently dropped near a three-day low.
- The USDX has struggled to make any clear upside progress after breaking above the aforementioned 83.50 area. An unsustainable fiscal situation and potential for further easing from the Fed could be weighing on the so called “safe haven” dollar.
- USDJPY was the biggest mover from the key dollar index currencies today as the Japanese yen (13.6% USDX weight) was down -0.51%.
- When referencing the other majors, the performance on Monday so far is as follows. EURUSD with a 57.6% USDX weight up +0.26% and has seen a rally on Monday afternoon after an earlier move lower. Price action around the current 1.2290 area could be key in the near term.
- GBPUSD with an 11.9% USDX weight up +0.36%, Canadian dollar (CAD) with a 9.1% USDX weight (USDCAD) up +0.02%.
- Any further USDX move to the downside would need to break below the minor pivot level seen around 83.00. Key previous support is seen much lower around the 81.10 – 81.50 zone.