The dollar index fell below 105.0 on Thursday after sliding 1% in the previous session, as investors try to assess softer-than-expected US inflation report that sparked a broad rally in risk assets and set of hawkish remarks from Federal Reserve policymakers emphasizing the central bank’s commitment to keep raising interest rates to tame price pressures. From a technical point of view, the index is testing a major resistance zone around 104.45 which is marked with lower limit of the 1:1 structure, 50 sma (green line), 23.6% Fibonacci retracement of the upward wave started in January 2021 and upward trendline. As long as price sits above the aforementioned level, another upward move may be launched towards recent highs at 109.20. On the other hand, should the break lower occur, the downward move may accelerate towards the next support at 101.60.
USDIDX, D1 interval. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
