USD Graphic Rewind: Dollar Index Consolidates Ahead of Fresh Gains
Created using Bloomberg
The dollar index lost some ground on Thursday, as we had forecast, as it consolidated Wednesday’s move back above initial ressitance at 75.00 and the confirmation of its short-term base. Despite being decently bid early in the day as European equities declined sharply in the early hours of trade, the rebound in commodities and equities during the US session put the index under the cosh and led it to a lower close.
At this present juncture we remain cautiously optimistic for further gains in the index with the buck set to post its second consecutive higher weekly close for the first time since late in 2010. We are encouraged by the resurgence of chatter and speculation surround Greece and the EMU periphery as well as reports like this mornings from the IMF that warned that the debt crisis in the EMU could still spread to core nations. All told we see the index continuing its climb into early next week with the next key resistance level coming in around the 76.00 region.
Written by Jonathan Granby, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.