VIDEO DXY continues lower on the back of the strong US data

Forex trading

The US Dollar is succumbing to the powerful payroll data on Friday, as well as, the strong services ISM data.  Economists say more is on the way.  As the vaccine rollout continues, the stimulus checks are handed out, and the infrastructure spending project on the way, many are expecting a boom is hiring and household spending throughout the summer. 

Everything you wanted to know about DXY

Currently, price is trading at the 200 Day Moving Average near 92.41.  Just below there is the previous resistance near 92.10, and finally a large band of support between 88.40 and 91.40 dating back to the spring of 2018.  Resistance is at the March 31st highs and the previous mentioned long-term trendline near 93.44, and then the flag completion and horizontal resistance near 94.15.  94.76 sits just above that and acts as the 3rd level of resistance.

If the US data remains strong, watch to see when stocks will begin pricing in higher interest rates once again.  At that time, if not sooner, bonds and the US Dollar index may move higher once again.

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