- Summary:
- USD Index (DXY) remains in demand this Friday, as a slew of positive data from the US help boost the US Dollar this Friday.
The US Dollar Index (DXY) retains its bullish bias for the day, after the Fed’s preferred inflation barometer, the Core Personal Consumption Expenditures (PCE) Price Index, came in unchanged at 1.5% in January (annualized). This figure was slightly higher than the 1.4% expected by the markets.
Furthermore, the drop in trade deficit and the 10% rise in Personal Income (monthly) helped sustain USD demand this Friday, keeping the USD Index 0.5% higher.
Technical Outlook for USD Index
Friday’s bullish candle is challenging the smaller channel’s trendline, at the 90.503 resistance line. A breakout of this level allows the USD Index to aim for 90.965, with 91.50 and 91.906 serving as additional barriers to the north. These barriers need to be taken out as the DXY aims to target the larger channel’s return line, following the bounce of 25 February.
On the flip side, a rejection at the current resistance (90.503), which lies on the upper border of the smaller descending channel, allows for a retest of 90.228, with 89.741 and 89.189 serving as potential downside targets if the price breaks below the larger ascending channel.
DXY Daily Chart
