US Dollar Loses Value After Weak Economic Stats From USA
London (Mar 25) After last week's rally, the US Dollar index is trading within the 80.15-80.41 price range today, on Monday. During the American trading session, the US Dollar lost a bit of its value gainst other major currencies, which is indicated by the mentioned index.
Experts say that the US Dollar is currently showing weakness amid weaker manufacturing stats. Indeed, the latest US manufacturing activity report published today indicates weakness. The US manufacturing index indicated 55.4 in Q1 2014.
Meanwhile, Market Leader asked Masterforex-V Academy to conduct comprehensive research in order to define the near-term prospects of the US Dollar index for traders and investors.
In particular, the experts working for Masterforex-V Academy analyzed the H1 chart of the USD index. The mentioned timeframe shows us the development of a bullish wave of a bigger wave level. The movement started last week. Still, the bullish momentum encountered resistance around the MF pivot located at 80.42 .At this point, the price cannot break above the level to initiate a further rally. Therefore, the price rebounded form the level to find the bottom around 80.15.
Consequently, the USD index is currently trading within the scope of the 80.15-80.42 price range. This means that the direction in which the price will come out of the range may well indicate the direction of the future price move.
Still, Masterforex-V Academy reminds us that the USD index is moving within the framework of a long-term downtrend. If the price succeeds in overcoming these levels, the next level to hit is 79.22.
Resistance levels: 80.42 – and MF pivot and the top of the price range. A break and consolidation above it will give way to further highs, including 80.50 and higher.
Support levels: 80.15 and 80.06 – the bottom of the range and another MF pivot respectively.