RowaynaAhmed

Unexpected Trend for the US Dollar Index.

TVC:DXY   U.S. Dollar Index
Despite the positive data about the indicator ADP nonfarm employment change that has been more than the expected data by 405K points, the US dollar index has fallen by 0.44% between the resistance line 96.336 and the support line 95.911. This is due to the high frequency of Corona injuries in the United States and the outbreak of the Omicron mutated, which increases fears about closures again, that may orient the US Federal Reserve toward a tightening monetary policy. Accordingly, this weakens the risk appetite in the currency markets and supports the demand for safe havens and currencies by moving away from risk currencies that include the US dollar. Therefore, the index is expected to fall and break the first support line 95.911 to meet the second support line 95.901 and then the third support line 95.887. On the contrary, if the index rises, it will breach the first resistance line 96.136 to meet the second resistance line 96.15 then the third resistance line 96.163
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.