- With the US Federal Reserve adopting a hawkish stance, the US dollar index consolidated its recent gains and rose to a nearly two-year high.
- Geopolitical risks and concerns about the economic outlook are further increasing the demand for high-yield funds.
- Dollar bulls are taking a cautious stance and are waiting for the release of US nonfarm payrolls data to make new investments.
The U.S. Dollar Index (DXY), which tracks the greenback against a basket of currencies, was steady above 109.00 on its way to its highest level since November 2022 as investors await U.S. nonfarm payrolls (NFP) data. ) Report before you act. new move.
On the other hand, the possibility that the Fed will slow down its rate cuts, which is one of the main factors behind the recent rise in US Treasury interest rates, continues to support the dollar. In addition, concerns about US President Donald Trump’s tariff plans, regional risks and weak voice are among the other factors supporting the precious metal.
From a technical perspective, the positive bounce from the 107.55-107.50 resistance-reversal-support level this week and the subsequent uptrend were beneficial for investors. Also, the oscillators on the daily chart are still in the positive territory and are far from the overbought zone. This shows that the path of least resistance for the index is upwards and supports expectations that the rise will continue.
But before placing new bets, it would be wise to wait for prices to break the 109.55 area or the two-year peak seen earlier this month. The dollar could rise to 110.00 psychologically. Strength in the 110.50-110.55 range is expected to continue toward 111.00 and the November 2022 peak around 111.15.
On the other hand, the 108.75 area seems to be a bit of support, below this level the index is expected to decline towards the 108.15 area and then towards the horizontal levels of 108.00 and 107.55. Sales below this level may pave the way for a deeper correction and may pull the price below the 107.00 resistance level and test the ongoing support around the support line (middle 106.00 level).
DXY Daily Analysis
