Recent Euro strength and so-so domestic economic data have placed added pressure on the US Dollar. As so often is the case, a pullback in the buck is seen as a tailwind for equities (see Friday’s action).
The Dollar’s recent drop has the index eyeing its first level of support at 82. Below that is uptrend support near 81 and the .382 fibonacci retracement of 79.75 (but that may be getting ahead of ourselves). Either way, the dollar is under pressure and whether it finds support or not (and at what level) should play a role in the direction of equities.
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US Dollar Index technical chart with support and resistance levels and trend lines. US Dollar technical chart analysis. US Dollar currency chart and analysis.
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