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The US Dollar (USD) trades rather steady on Tuesday after reaching a 10-week high on Monday, fueled by investors’ views that the Federal Reserve won’t cut interest as quickly and aggressively as previously expected. Moreover, markets seem to be betting on a possible win for former President Donald Trump in the November 5 presidential election after several betting websites and polls showed the Republican nominee starting to lead. The is again rather light on Tuesday. Besides the NY Empire State Manufacturing Index for October, there is not much with the potential to thrill markets. Rather look for some moves coming from the three officials that are scheduled to speak.
Daily digest market movers: Markets vs Fed, round 2
US Dollar Index Technical Analysis: Technical rejection ahead The US Dollar Index (DXY) is facing some resistance with a second false break and rejection at the 100-day Simple Moving Average (SMA) at 103.23. The risk is that, with the second rejection, the DXY sees sellers coming in and defend that 100-day SMA. A broad fade in search of support could play out with a return to 101.90 as first pivotal support level. The first resistance level at 103.18 is under pressure, with the DXY trading around it for a second day in a row. Once above there, a very choppy area emerges, with the mentioned 100-day Simple Moving Average (SMA) at 103.23, the 200-day SMA at 103.78, and the pivotal 103.99-104.00 levels.On the downside, the 55-day SMA at 101.90 is the first line of defence, backed by the 102.00 round level to catch any bearish pressure and trigger a bounce. If that level does not work out, 100.62 also acts as support, which was the low of December 28th 2023. Further down, a test of the year-to-date low of 100.16 should take place before more downside. Finally, and that means giving up the big 100.00 level, the July 14, 2023, low at 99.58 comes into play.(Click on image to enlarge)US Dollar Index: Daily ChartMore By This Author:Crude Oil Posts Fresh Monthly High As Markets Weigh Up Likelihood Of Fresh Escalation In Middle East USD Consolidates Gains After Powell Signals Caution On Rate Cuts US Dollar Flat With Traders Digesting The Past Fed Meeting
