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The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, extends gains on Tuesday, hitting a three-month high at 104.55. Despite a slight dip in September JOLTS Job Openings, the US labor market remains robust, as indicated by steady hiring and separation rates.Key economic data releases, including ISM Manufacturing PMI and Nonfarm Payrolls (NFP), are expected this week. The outcome of these releases will be crucial in determining the index’s trajectory. The USD remains supported by a resilient economy, but headwinds include Fed caution on inflation and market expectations for rate cuts.
Daily digest market movers: US Dollar rises despite mixed labor data, Trumps odds also help
DXY technical outlook: DXY surges, faces resistance from overbought conditions
The DXY index remains above its 200-day SMA, but the rally faces resistance as overbought conditions emerged. The index is now expected to consolidate, potentially correcting its overbought status. Indicators such as the Relative Strength Index (RSI) remained near overbought levels. Technically, the index cleared gains that had pushed it to a high of around 104.60, which gives further evidence of buying momentum losing steam. Support levels lie at 104.50, 104.30 and 104.00, while resistance levels are located at 104.70, 104.90 and 105.00.More By This Author:USD/JPY Is Testing 153.90 High Ahead Of US Labour Data US JOLTS Job Openings Expected To Resume Downward Trend In September Gold Price Moves Back Above $2,750 Level, Closer To All-Time Peak
