US Dollar Index (DXY) Hesitates Up Against Resistance

Frankfurt (Feb 13)  The US dollar index (DXY), which measures the greenback’s strength against a basket of six major currencies, is little changed in today’s trading, currently holding near the 100.70 level, down 0.01% from Friday’s close.

DXY is hesitating up against resistance defined by the high established on January 30 at 101.02. Today’s high stands at that exact same level. Given that the Stochastic, a price momentum indicator, has risen to an overbought level and appears to be turning lower, further consolidation appears likely over the near term.

On the downside, near term support is at the 20-day moving average, which comes in near 100.30. As long as this moving average remains intact, the bias will remain firmly to the upside. A decline below this moving average would leave the target at the 100-day moving average, which stands at the psychologically important 100.00 level. At present, this level if expected to remain intact.

On a break above the 101.02 level, the next target becomes the January 19 high at 101.73.

In economic news this week in the US, no releases are on the calendar today. On Tuesday at 08:30 ET, PPI will be released. A reading at 0.3% is expected, unchanged from December.

On Wednesday, CPI is due at 08:30 ET, as is retail sales. CPI is expected to come in at 0.3% for January, unchanged from the reading in December. Retail sales is expected to come in at 0.1% for January, versus a reading in December at 0.6%. Capacity utilization/industrial production will be reported at 09:15 ET.

Source: EconomicCalendar