Look beyond ordinary analysis
The US dollar finished the week with mix results in the forex market. Against European currencies ended lower but it continued to rally versus the yen, that boosted the DXY. The Dollar index dropped 0.30% on Friday but ended the week up 0.25%.
The index rose for the third consecutive week and consolidated above the 100.00 handle. Rising US bond yields and expectation of a Federal Reserve rate hike in December gave support to the US dollar. Also, the latest economic reports from the US surpass expectations. Next week, the key data will be the US official employment report with the NFP.
The DXY reached 13-year highs on Thursday above the 102.00 zone and then pulled back. It ended the week near the 101.50 area. So far, is up almost 3% during November. The rally of the US dollar in the market appears to be losing strength, but so far, corrections have been limited and the bullish trend remains intact.
While US bond yields remained near multi-month highs, Wall Street main indexes ended at new record highs on Friday. The Dow Jones rose 0.35% on Friday, closing at 19,150. Crude oil (WTI) plummeted more than 4%, ending below $45.00.
DXY Technical levels
To the upside, resistance could be seen at 102.05 (Nov 24 high), 102.20 (Apr 2003 high) and 102.65/70 (March 2003 high). On the flip side, support levels might lie at 101.15 (Nov 25 low), 100.65 (Nov 22 low) and 99.95 (Nov 17 low).
Source: Fx News
517 total views, 2 views today
518 total views, 3 views today