US Dollar Index (DXY) Starts Off the Week on a Quiet Note

New York (Feb 27)  The US Dollar Index (DXY) is little changed in today’s trading, currently at 101.09, a loss of 0.03% from Friday’s close.

Volatility could pick up, however, given the release of Durable Orders/Goods at 08:30 ET. This is followed by Pending Home Sales at 10:00 ET.

Near term support on a move to the downside is at Friday’s low, established at 100.66. On a drop below this level, the target becomes the February 16 reaction low at 100.41.

On the upside, resistance is at last week’s high, 101.72. This high represents a test of the high established February 15 at 101.76. A sustained move above this zone is required to improve the outlook for the dollar index. As long as this area remains intact, the broader bias will remain to the downside.

With the dollar off the highs of the session and a negative divergence in place between price and the Stochastic, a price momentum indicator, on the daily chart, it appears the dollar index has further room to move on the downside over the near term.

Source: EconomicCalendar