Dollar Index Analysis

Fundamentals- The dollar remains on track to close the sixth consecutive week with gains, always underpinned by the uptrend in US yields, auspicious results from US fundamentals – which in turn support the idea of a strong recovery – a pick-up of risk aversion on omicron fears and lately by the hawkish twist in Powell’s testimony after he suggested the Fed will discuss adopting a quicker tapering pace at the December meeting, all pointing to a rates lift-off at some point in mid-2022.

Technicals- DXY is still in a very strong Uptrend on all higher timeframes (Daily, Weekly & Monthly). Potential counter-trend opportunities could occur if the price breaks below (95.510), signalling start of downtrend.

Daily Support Zone- (95.510 - 95.920)

H4 Resistance Zone- (96.580 - 97.180)