The US Dollar (USD) starts the week on the front foot and strengthens on Monday, with (DXY) edging higher above the 105.00 level. The positive undertone for the Greenback is supported by the increasing likelihood that the Republican Party will win a majority in the US Congress after President-elect Donald Trump has already won the presidency and the Republicans secured a majority in the US Senate. The vote count for the House of Representatives is still ongoing, with only four more seats needed for the Republicans to win it. The US economic calendar is empty on Monday in observance of Veteran’s Day. markets in the US will remain open, but bond markets will be closed. Later in the week, investors will pay close attention to speeches from several Federal Reserve (Fed) officials, including Fed Chair , and the US (CPI) data for October, which will be published on Wednesday.
Daily digest market movers: Off to a positive start
US Dollar Index Technical Analysis: Here comes resistance againThe US Dollar Index (DXY) pushes higher on Monday after headlines over the weekend that President-elect Trump has won the last remaining swing state in the US election and has secured a substantial landslide victory. Should the House of Representatives, where counting is still ongoing, fall in the hands of the Republicans, expect another push higher in the DXY once the headline breaks and is confirmed by several media outlets. The first level to watch out for on the upside is 105.53 (April 11 high), a very firm cap resistance, with 105.89 (May 2 high) just above. Once that level is broken, 106.52, the high of April and a double top, will be the last level standing before starting to talk about 107.00.On the downside, the round level of 104.00 and the 200-day Simple Moving Average (SMA) at 103.86 should refrain from sending the DXY any lower. (Click on image to enlarge)US Dollar Index: Daily ChartMore By This Author:US Dollar Steadies After Wild Ride, With Powell Shrugging Off Politics US Dollar Retreats From Post-Election Rally As Markets Turn To Federal Reserve Decision US Dollar Soars To Four-Month High As Trump Wins US Presidency
