- November 19, 2022
- Posted by: Stratford Team
- Category: Economy
The fall in the US dollar index paused last week. The index made a low of 105.34 and has risen back from there. Although the movement in the past week is giving some sign of relief for the dollar, the broader picture is still weak. As such any bounce in the near term will be short-lived and the upside is likely to be capped.
Room to fall
The US Dollar index (106.93) remained stable in a range of 106-107.3 after bouncing from the low of 105.34. The immediate outlook is mixed. But as seen from the daily chart, as long as the dollar index sustains above 106, the chances are high for it to see a corrective rise in the near term. A decisive break above 107.3 can take the index up to 108.50 or 109 in the coming days.
However, the region between 108.50 and 109 is a strong short-term support that can cap the upside. We can expect the dollar index to reverse lower from the 108.50-109 resistance zone. That leg of down-move can take the dollar index down to…
