USD index tests 103.35 support

6:58 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

Share:
Back

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

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits