US Dollar Index (DXY): Consolidation Appears Likely

London (April 19)  The US Dollar Index (DXY) fell sharply lower in Tuesday’s trading, but is currently attempting to stabilize and is up 0.13% in today’s trading, holding near the 99.63 level.

Further upside over the near-term appears likely, as the Stochastic reached a fully oversold level and is now attempting to move higher.

Resistance is near the mid-point of Tuesday’s long red candle, at the 99.93 area.

Overall, however, the broader bias is to the downside. On Tuesday, DXY broke below support at the 100.00 level and also took out the 61.8% retracement of the advance from the March low. Thus, the current rebound is expected to be short-lived and followed by a complete retracement of the advance from the March bottom, which would result in a move back to the 98.86 level.

At 14:00 ET, the Federal Reserve’s Beige Book will be released. On Thursday, weekly jobless claims are due at 08:30 ET, as is the Philadelphia Fed Index. Leading Indicators will be released at 10:00 ET tomorrow.

Source: EconomicCalendar