After nine consecutive weeks of US dollar gains, the Dollar Index (DXY) is probing a key chart resistance level, and the rate of the rally has taken the currency into ‘overbought territory’. After a strong run of excellent US data, we ask the question, is the dollar priced to perfection and vulnerable to a correction?
- Dollar Index is the USD versus a basket of other currencies (57% Euro, JPY 13%, GBP 11% etc).
- The above year to date chart illustrates that the DOLLAR INDEX has almost reached a chart resistance level of 105.50. We can see above that this was a major level in Q1 2023. The expectation is that the Dollar will pause / retrace from here.
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