Updated: 4 days ago
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The US Dollar (DXY) Index, which measures the greenback strength against its six major rivals, staged a bearish turn on Monday and dropped 40 or so points to an intraday low of 93.66, while the Eurodollar, which is weighted 57.6% to the index jumped to a three-week high and close to the 1.1650-65 resistance.

Meanwhile, the opposite monetary policy outlooks between the US Fed and the European Central Bank (ECB) could likely pose a downside risk to EUR/USD, while the Fed is well on track to withdraw the pandemic stimulus as early as November while the ECB calls for keeping a high degree of flexibility in the post-crisis stimulus measures.

Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has reinstated a positive signal, while the Moving Average Convergence Divergence (MACD) holds a positive signal.

At present, eyes remain on the 1.1660-65 area before any negative traction is likely to return.

Levels 1st 2nd 3rd
Resistance 1.1660-65 1.1730-35 1.1785-95
Support 1.1590 minor 1.1510-20 1.1445-50