Dollar Index Meets Double Bottom Support – Buckle Up for GDP
Arslan Butt • 1 min read
On Thursday, the Greenback trades near a one-week high against its peers on hopes of optimistic trade talks between the US and China. However, the traders are cautious ahead of a meeting between heads of the two biggest nations.
We are very close to significant events like Final GDP and G20 meeting, and there’s likely to be a massive movement in the market, especially on Monday after we have G20 reports.
In about 30 minutes, the US Bureau of Economic Analysis is expected to publish Gross Domestic Product data. The US economy expanded at an annualized pace of 2.2% in Q1 2019, but the final variant of GDP growth is expected to print 3.1%.
Looking at the chart, the US dollar index has returned earlier gains of the day to trade at 96.17. It looks like the market is muted and awaits the US Final GDP figures. On the daily chart, the dollar index is facing support above 94.80. It’s the same level which pushed the dollar higher to 98.25 back in March 2019.
A bearish breakout of 95.80 can lead dollar index towards 95.16. Whereas, the dollar can continue its upward momentum until 96.80 only if it manages to survive above 95.80.