USDIndex, H1
The USDIndex (DXY) is down 0.3% at 96.36, earlier pegging a three-day low at 96.18. The losses comes amid talk of a report that the US is aiming to pressure Beijing to lift the Yuan, allegedly published in the NY Times, although we haven’t found it yet and, while perhaps a dollar-selling cue, is a moot point as it should be crystal clear that President Trump is desirous of China having weaker currency. The Chinese currency has weakened by nearly 10% against the Dollar since April, which is a record depreciation in the current forex regime. Beijing has argued that is a consequence of Fed rate hikes.
The daily pivot and 20-period Moving Average at 96.45 is a key intra-day Resistance area, with Support at 96.20 and that three-day low. Following a strong week for the USDIndex last week, a close today over 95.75 maintains the higher time frames bullish trend.
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Stuart Cowell
Head Market Analyst
HotForex
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