USDMXN Higher after Mexico Consumer Confidence beat Forecasts
The USD Index (DXY) has recovered nicely this Thursday after US 10-year bond yields surged.
The DXY had faced late pressure on Wednesday when the FOMC unveiled a dot plan that pushed back potential interest rate lift-off until 2023 in what was considered a dovish action. That put the DXY in the red.
However, bond yields are back up again and this has supported the USD Index. The DXY presently trades at 91.873 or 0.47% higher as of the time of writing.
The DXY was not shaken by the rise in first-time applications for unemployment benefits in the US, which jumped to 770K (previous 725k – revised); a figure which also outstripped the market expectation of 700,000.
91.906 continues to remain a stubborn resistance, having rejected the upside move by bulls on the day with a slight pullback to go with it.
This level remains the resistance for the week. Bulls need to crack it wide open for the price to achieve the 92.50 resistance formed by the 9 March high. Above this level, 92.803 remains a potential upside target for bulls pushing hard for a continued recovery.
On the other hand, a further pullback on the asset targets 91.50, with 91.26 and 90.965 coming in as potential targets to the south. Bears aiming for the channel’s lower border have to attain the 90.503 target and 89.741 becomes available if the channel’s trend line is taken out.
