Markets on Friday: The Dollar Finds its Feet
Rowan Crosby • 1 min read
The US Dollar continues to lack any real direction, despite it being green in trade yesterday. Overall there was some stronger data out which gave the greenback a much-needed boost.
Only a day earlier we saw a really sluggish retail sales number and that sent the USD back to support, where it has been a fair bit this week.
As a result, the majors were under a fair bit of pressure. The Aussie and Kiwi took some serious heat. Which seems to be the case recently.
While the USD/CAD has broken out above the big level above 1.3000.
The support level in the DXY at 89.50 has really been my focus all week. I have been watching the head and shoulders take shape and was actually getting ready for a break.
That obviously didn’t happen yesterday, but it’s not to say that the USD is golden. On an almost daily basis, we are back and forth on the economic data of the day.
I still think overhead resistance is strong and the case for a raging dollar in the short-term is weak. As such I’m still looking for more weakness and a test of 89.50.
US Dollar Index (DXY)- 240 min Chart.