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DXY drops to lows, US data eyed

FXStreet (Edinburgh) - The US Dollar Index, which tracks the greenback vs. its main competitors, is giving away initial gains and is currently testing the area of 95.20, or daily lows.

DXY turns negative

The index has reverted an auspicious start managing to climb to intraday tops beyond 95.60, although the up move lacked follow through, triggering the current knee-jerk.

The USD is now posting meagre losses after the strong recovery last Friday, ahead of US Factory Orders due later, with prior surveys expecting a monthly advance of 2.0% during March.

DXY relevant levels

The index is now losing 0.05% at 95.25 and a breach of 94.50 (low May 1) would aim for 94.40 (low Apr.30) and then 94.06 (low Feb.26). On the upside, the initial hurdle lines up at 95.62 (high May 4) ahead of 96.18 (high Apr.29) and finally 96.93 (high Apr.28).

USD/JPY sees potential for 123.24 – Goldman Sachs

According to FX Strategists at Goldman Sachs, USD/JPY is currently breaking through the top of a triangle formation, and sees potential for a test of 123.24 levels.
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