23 Mar 2015
DXY dips below 97.30
FXStreet (Edinburgh) - The sell off continues in the US Dollar Index, now printing intraday lows in the area of 97.30/25.
DXY extends the downside post-FOMC
The greenback continues to lose ground as selling sentiment has been gathering pace since last week’s dovish tone from the FOMC meeting. Despite the recovery on Thursday, the renewed dollar depreciation has resumed and has now dragged the index well below the 98.00 handle.
From the technical perspective, strategists at Rabobank commented, “we would like to emphasise that it would require a fairly sharp correction well below the 90 level to cause serious damage to the prevalent upside trend. After all, the bullish breakout of the downside trendline resistance from the 1985 top could be just the beginning of a long-tern reversal with the 2001 high at 121.02 as next potential mid-term target”.
DXY levels to consider
The index is now losing 0.66% at 97.23 and a break below 97.00 (psychological level) would target 96.89 (low Mar.6) en route to 96.58 (low Mar.5). On the upside, the initial barrier lines up at 99.46 (high Mar.19) ahead of 99.79 (high Mar.18) followed by 99.83 (high Mar.17).
DXY extends the downside post-FOMC
The greenback continues to lose ground as selling sentiment has been gathering pace since last week’s dovish tone from the FOMC meeting. Despite the recovery on Thursday, the renewed dollar depreciation has resumed and has now dragged the index well below the 98.00 handle.
From the technical perspective, strategists at Rabobank commented, “we would like to emphasise that it would require a fairly sharp correction well below the 90 level to cause serious damage to the prevalent upside trend. After all, the bullish breakout of the downside trendline resistance from the 1985 top could be just the beginning of a long-tern reversal with the 2001 high at 121.02 as next potential mid-term target”.
DXY levels to consider
The index is now losing 0.66% at 97.23 and a break below 97.00 (psychological level) would target 96.89 (low Mar.6) en route to 96.58 (low Mar.5). On the upside, the initial barrier lines up at 99.46 (high Mar.19) ahead of 99.79 (high Mar.18) followed by 99.83 (high Mar.17).