US DOLLAR OUTLOOK: DXY-INDEX-PRICE INCREASES ARE LOWER than HEADS IN THE FOMC minutes, REALESE AS The EUR/USD-SURGES, USD/CAD & USD/JPY DOWN
- The U.S. Dollar takes another spill lower that the EUR/USD jumps again, USD/CAD and USD/JPY down
- DXY index has declined for three straight trading sessions, to a critical technical support level
- FOMC minutes due for release, could provide a shock to the U.S. Dollar, in the midst of an increase of the volatility of the currency
The Dollar remains under pressure in Wednesday trading, as the USD-price action on the slides wide, and experience, in particular, the weakness against the EUR, CAD and JPY. The DXY Index is now trading more than 1% below its closing price on Friday, after declining for the last three sessions the right.
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THE US DOLLAR – DXY INDEX PRICE CHART, DAILY TIME FRAME (FROM 30 JANUARY TO 20 MAY 2020)
Graphic created by @RichDvorakFX with TradingView
If DXY price action has fallen nearly 1.5% since last Friday’s close, the widest The US Dollar Index has been maintained to a choppy trading range between the April 27 and a low around 98.25-and-the-April-06 to a high of near-the-100.90 brand. That said, as the DXY Index approaches the 99.00 handle, and the month of the date of the bottom, it is possible that the Dollar will fall is limited, if it is in the area of technical confluence, can offer a cushion of support.
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This the technical support the area, which is nearly highlighted at the mid-point retracement of March’s turbulent trading range, as well as the bottom channel of its. The Bollinger Bandscould be a springboard to the US Dollar higher. However, a recovery attempt could face the resistance posed by the The 50-day moving average that has not kept the DXY Index strengthened earlier in the week.
USD USD USD USD * PRICE OUTLOOK US DOLLAR ON IMPLIED VOLATILITY, TRADING RANGES, (DURING THE NIGHT)
That said, if the USD, the price of the stock, and the major currency pairs beat back and forth between the large and the technical obstacles, there is a possibility that is based on implied volatility, trading ranges, may be to keep the direction of the US Dollar and relatively contained. Also of note, the research of the the economic calendarthe publication of the FOMC minutes due Wednesday, 20 May at 18:00 GMT, could cause a reaction in the U.S. Dollar.
— Written by Rich DvorakAnalyst for the DailyFX.com
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