US dollar stagnates amid bullish economic data

Even though bullish economic data gave the greenback a boost on Friday, the greenback was down in London on Friday as the dollar headed for a second straight week of losses.

According to US data released Thursday, existing home sales rose 7% month-over-month in September to 6.29 million units.

However, the DXY bulls failed to put pressure on the 94 resistance band, following better than expected data.

At the time of writing, the US dollar index which measures the greenback against a basket of other currencies has fallen 0.04% to 93.71 index points.

After the most daring move in over a week, the bulls pause around 93.75 on the US dollar index. After reversing the price from the monthly low, the greenback’s gauge is now oscillating in an unstable range.

After a low of 92.32, the index broke through its opening range to break through the resistance level of 93.40 / 45 at the end of the month.

The rally was halted by resistance around the 94.47 / 65 price band, after a breakout of the lows of the October opening range, threatens a further correction in the greenback in the days to come within the limits of the wider uptrend.

With this, some forex traders are now getting nervous about the safe haven currency as the dollar index fell 0.18% for the week and is expected to decline for the second week in a row.

The dollar is weakening, which goes against the rhetoric that global growth is slowing and the US Federal Reserve is embarking on asset reduction. Fed actions should support the dollar, and traders are wondering if we are at an inflection point.

This article originally appeared on FX Empire

More from FXEMPIRE:

Previous US dollar reverses some losses - economic data supports
Next US dollar slips amid economic data

No Comment

Leave a reply

Your email address will not be published.