US Dollar Index Gains as Risk-On Mode Returns

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

US Dollar Index Gains as Risk-On Mode Returns

This week the situation turned on the upside, as the Irma hurricane had passed and there have been diminishing tensions between the US and North Korea. In terms of US dollar index binary options activity, the price had been trading upwards, covering some of last week losses.

Current price structure points for further gains

Looking at our chart below, you can see that the price had been trading impulsively since Monday open. Interestingly though, the gap that formed at the open had not been filled, as usually happens, confirming that the bulls were eager to continue to buy.

To refer a little about the technical analysis, if the upside trend will continue higher, we expect selling pressure to emerge around 92.03 and 92.78, were binary options activity on the downside could resume again.

A retracement lower, on the other side could send the price towards 91.41 swing point, where buying activity could emerge again.

A downward leg is expected before a continuation higher, since the price had been trading lower for a decent amount of time and from a technical perspective, V-shape bottoms occur very rare.

The political situation could play a major key in the future. A UN meeting scheduled for a new round of sanctions against North Korea could revive the downward pressure and the bearish trend could resume. The recent surge in price had been driven by a calm situation in North Korea as the communist regime did not made any significant statements in recent days. In case the UN will decide to add new sanctions, they could respond to them and tensions could arise again.

To sum up, current upside leg had formed due to a relief of the tensions that had been high for a decent amount of time. However, the risks to the downside persist and any new surge of political risks can have a bearish effect on the US dollar index.

Risk Warning and Disclaimer

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance.

US Dollar Index trims gains and returns to 96.00, US CPI in sight

The greenback, in terms of the US Dollar Index (DXY), has returned to the negative territory in the 96.00 neighbourhood, eroding part of Tuesday’s strong advance,

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

US Dollar Index focused on data, coronavirus

News that the White House has started negotiations to propose a relief package to battle the impact of the coronavirus on the economy has bolstered the strong recovery in the index and lifted yields on Tuesday, although much of that initial effect has already faded on Wednesday.

Indeed, after testing 2-day highs around 96.50 on Tuesday, the dollar lost momentum and it has now receded to the current 96.00 zone ahead of the opening bell in the Old Continent.

In the meantime, cases of infected people continue to grow in Europe and is currently favouring the return to the safe haven universe – with JPY, CHF and bonds as the main beneficiaries – in detriment of the buck.

In the US data space, the publication of February’s inflation figures gauged by the CPI will be the most salient event later on the day.

What to look for around USD

Despite the ongoing bounce off multi-month lows near 94.60, the outlook on the index remains on the bearish side for the time being. In the meantime, the dollar remains under heavy pressure in response to rising bets on another Fed move on rates at the March meeting, declining yields and heightened concerns on the impact of the coronavirus on the economy. Attention still remains on the White House and the probable announcement of a package of fiscal stimulus anytime soon.

US Dollar Index relevant levels

At the moment, the index is retreating 0.49% at 96.01 and faces the next support at 94.65 (2020 low Mar.9) seconded by 94.20 (38.2% Fibo of the 2020 drop) and then 93.81 (monthly low Sep.23 2020). On the upside, a break above 96.58 (weekly high Mar.10) would open the door to 97.78 (200-day SMA) and finally 98.19 (monthly high Jan.29).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

FXStreet Trading Signals now available!

Latest Forex News

Latest Forex News

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points.

GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.

NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise.

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Forex MAJORS

Cryptocurrencies

Signatures

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Author Archive

Volatility and Binary Options

If you are familiar with the financial world, you have probably heard many times about volatility. For those of you who do not know what volatility is, we must begin…

Hedging with Binary Options

One very useful way to use binary options is for hedging purposes. That is why this article was designed to show you some clear and basic steps you can you…

Binary Options Signals – Reliable?

If you are interested in binary options, you have probably encountered many signal providers along the way and you are most likely asking yourself if they are reliable. You’ve seen…

Binary Options – A Stable Income?

Most of you who are reading this article probably have a job and you are bored to death by the monotone activities you are required to do each day. So,…

Mindset and Binary Options Trading

When it comes to binary options trading, you should take into account that mindset plays a major key, as it is with trading any other financial contracts. It is not…

Trading Binary Options Part-Time

There are some of you who would like to trade binary options, but have one issue: they have a job that takes a considerable amount of their time. The goal…

Common Mistakes Binary Options Traders Make

When it comes to binary options trading, people face a lot of troubles and the reason for that is a totally wrong approach to this activity. We’ve designed this article…

With-trend trading vs. Counter-trend trading for Binary Options

One of the biggest questions binary options traders ask is whether they should always trade in the direction of the dominant side of the market, or if counter- trend trading…

US Dollar Index Sinks Following Weaker Retail Sales

US Dollar Index weakened on Friday following lower than expected Retail Sales figures for the month of August. Binary options traders might have been profiting along the way down, since…

Trading Time Ideal for Binary Options

As you already know, most of the market across the financial world are opened 24 hours a day, 5 days a week so theoretically you can trade binary options whenever…

Money Management for Binary Options Trading

If you are a beginner and just started to learn about binary options, you should understand the fact that treating it like gambling won’t help you too much. Even though…

US Dollar Index Gains as Risk-On Mode Returns

This week the situation turned on the upside, as the Irma hurricane had passed and there have been diminishing tensions between the US and North Korea. In terms of US…

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Broker!
    Perfect for beginners!
    Free Demo Account! Free Trading Education!

  • Binomo
    Binomo

    Only for experienced traders!

Like this post? Please share to your friends:
How To Choose Binary Options Broker
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: