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The US Dollar Index (DXY) is visiting the 105 level with sharp losses at the end of the trading week. This comes after Friday’s report of weak US Nonfarm Payrolls (NFP) figures from April, which made markets dump the USD.The US economy is exhibiting mixed signs of progression with robust demand and a tight labor market exhibiting slow yet significant wage growth, contributing to inflation. Federal Reserve (Fed) Chair Jerome Powell remains cautious about inflation’s uncertain trajectory, emphasizing that restrictive monetary policy has curtailed economic overheating. On Friday, weak labor market figures made markets raise the odds of interest rate cuts in September.
Daily digest market movers: DXY down on weak NFPs
DXY technical analysis: DXY displays an overall bullish bias despite imminent selling pressure
The technical outlook of DXY primarily mirrors a bullish dominance with a lurking bearish comeback. The Relative Strength Index (RSI) records a negative slope in negative territory, hinting at heightened selling momentum by bears. The relentless bearish push has, however, proven insufficient as the pair still trades above the 100 and 200-day Simple Moving Averages (SMAs).Furthermore, the Moving Average Convergence Divergence (MACD) reports rising red bars, hinting that bears are gaining ground. The bearish signal should be taken seriously as the sellers pushed the index below the 20-day SMA. However, the longer-term SMAs remain as strong supports to defend the overall bullish outlook.More By This Author:Gold Price Remains On Tenterhooks With Eyes On Fed Policy Decision US Federal Reserve Decision Preview: Markets Look For Clues About Interest Rate Cut Timing NZD/USD Price Analysis: Bears Reign Supreme, Bulls Nowhere To Be Found
