News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The South African rand has continued its depreciation against the U.S. dollar this week after the Evergrande default probability remains. Get your $USDZAR market update from @WVenketas here:https://t.co/24dVHrkMDG https://t.co/aNNU5qnha6
  • What is more concerning than just US equities down or global equities being down is that 'risk' across the board is under serious pressure. The more intense and persistent this trend, the greater the risk it turns self-sustaining https://t.co/KPblFpeaqf
  • It's rare event where the buy-and-hold, long volatility crowd do a victory lap and say their formal 'I knew it'. The $VXX short-term volatility ETF is up sharply on heavy volume. One of my 'early warning' signals https://t.co/5XqfJJTqR3
  • Coinbase will drop its plans to launch its crypto lending program that was under regulatory scrutiny
  • $SPX Daily- Levels Discussed in today's Webinar. . . https://t.co/veixIAiLGT
  • Canadian Dollar Price Forecast: USD/CAD Spikes, Pulls Back - Loonie Levels https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/20/Canadian-Dollar-Price-Forecast-USD-CAD-USDCAD-Spikes-Pulls-Back-Loonie-Levels.html $USDCAD https://t.co/x94xr5DiNe
  • Technical Setups: $USD Majors, #Gold, #Oil, $SPX & #Bitcoin ahead of #FOMC (Webinar Archive) - https://t.co/nYxIJk2k8h
  • Airline stocks retracing losses, some already in positive territory, despite the large sell-off in the market. News that the US will overhaul its COVID-19 travel rules and lift some restrictions are good news for the airline industry $JETS $UAL $AAL $ALK
  • The S&P 500 have taken a clear dive to start the week and fear of full risk aversion is gaining traction. DailyFX's @JohnKicklighter discusses what to expect in the markets this week! https://t.co/Mlyp5Tbdax
  • $USD still pulling back from resistance. 93.43 was the Q1 swing high, still playing a role in $DXY support potential around prior res, ~93.20 https://t.co/3TnlEu0yZX https://t.co/ub8o4D8NhW
US Dollar Outlook: USD Price Action Eyes Biden Stimulus Proposal

US Dollar Outlook: USD Price Action Eyes Biden Stimulus Proposal

Rich Dvorak, Analyst

USD PRICE OUTLOOK: US DOLLAR ADVANCES DESPITE SLIPPING TREASURY YIELDS, BIDEN SET TO UNVEIL STIMULUS PACKAGE

  • US Dollar pushed higher on Wednesday despite a deeper pullback in Treasury yields
  • USD price action eyes details of president-elect Biden’s stimulus package proposal
  • The DXY Index looks to have found support from its 20-day simple moving average
Advertisement

The US Dollar notched a modest 0.3% gain on Wednesday as measured by the broader DXY Index. The advance came despite another decline in yields corresponding with strong demand for long-dated Treasuries. US Dollar strength was seen primarily against the Euro as a flareup in Italian political risk steered EUR/USD price action 65-pips lower on the session.

DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (21 OCT 2020 TO 13 JAN 2021)

DXY Index Price Chart US Dollar Technical Forecast

Chart by @RichDvorakFX created using TradingView

The broader US Dollar rebound paused yesterday, but the DXY Index seems to have found technical support from its 20-day simple moving average near the 90.00-handle. Breaching this area of buoyancy could open up the door for US Dollar bears to push the Greenback toward year-to-date lows. Resistance still looks underpinned by the upper Bollinger Band as well as the 38.2% Fibonacci retracement level of the 02 November to 06 January trading range.

Eclipsing these technical obstacles could motivate US Dollar bulls to set their sights on the 100-day simple moving average. The MACD indicator suggests that upward momentum may be accelerating. That said, it may be difficult for the broader US Dollar to sustain its rebound without Treasury yields rising further in the absence of demand for safe-haven currencies.

US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)

USD Price Chart Outlook US Dollar Implied Volatility Trading Ranges EURUSD

Learn more about implied volatility trading strategies!

Looking ahead to Thursday’s trading session, president-elect Joe Biden is set to unveil details on his fiscal stimulus plans, which could weigh on USD price action. Biden is expected to announce a stimulus package proposal with a ‘high price tag’ rumored to be around $1.3-trillion. Seeing that Biden is likely to find enough support for his plans from congress set to be controlled by democrats, the bigger the stimulus plan the more likely Treasury yields might extend higher. In turn, and considering recent market movements, this could help bolster the US Dollar.

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES