The DXY fluctuation range for the past two partial weeks was 4.34%. This is a fairly strong downward correction for the dollar. Is over? We may find out this week: a whole block of important US macro statistics will be released today at the start of the US trading session, including the September ADP reports on the ’employment in the private sector and the Institute for Supply Management (ISM) on business activity in the services sector in the American economy, and on Friday – the weekly report of the Ministry of Labor with data on the labor market of September USA
As we pointed out in our Fundamental Analysis today, “Dollar uptrend continues, pushing DXY to 20+ year highs near 120.00, 121.00.” Breakdown of the short-term resistance levels 111.07, 111.75 will be the first signal that the dollar and the DXY index will return to growth.
In an alternative scenario, a confirmed break of the 110.26 support level will become a sell signal.
*) for today’s and this week’s important events, see Key economic events of the week 03.10.2022 – 09.10.2022
Support levels: 110.26, 109.40, 105.55, 103.80
Resistance levels: 111.07, 111.75, 112.50, 114.00, 114.74, 115.00
