USD index tests 103.35 support

8:58 pm 24 November 2023

US dollar is one of the weakest major currencies today, dropping against all G10 peers except for Japanese yen. US dollar is resuming slide following a brief upward correction earlier this week. Today's drop is interesting as it comes in spite of a strong pick-up in US yields. 10-year US Treasury yield is up almost 8 basis points today, on the way to book the biggest single-day jump since November 15, 2023. USD index (USDIDX) is heading for the second weekly drop in a row.

Taking a look at USDIDX at D1 interval, we can see that the index bounce off the support zone ranging between 103.35 mark and 50% retracement of the recent major upward move earlier this and tested resistance zone ranging above 38.2% retracement on Wednesday. However, bulls failed to break above it and index resumed slide. The aforementioned 103.35 support zone, which is also marked with 200-session moving average is being tested once again today. A break below it would push the index to the lowest levels since August 2023 and may pave the way for a deeper drop, with 101.90 area being the first potential target for sellers.

US dollar index and US bonds (light blue overlay, inverted). Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.