US Dollar sentiment continues to suffer. Not even the CFTC Positioning Report, which shows that institutional investors are gradually unwinding their US Dollar short positions, are not helping the asset much.
Tuesday’s coronavirus numbers from the Florida Department of Health also do not provide much room for optimism. The number of confirmed coronavirus cases in Florida rose by 2,673, bringing the total number of cases there to 605,502, as per a Reuters report. These numbers have continued to climb following the Independence Day holiday weekend when beaches were opened to attract thousands of revellers; a decision which in hindsight has proven to be a nightmare for public health officials in the state.
Dampening the mood further was the Consumer Confidence report by the Conference Board for August 2020. The drop from last month’s revised figure of 91.7 to this month’s 84.3 marked a steep drop after confidence rose in May and June 2020.
As at the time of writing, the DXY was trading at 93.09 or 0.22% lower on the day.
Technical Outlook for US Dollar Index
The USD Index is trading just below the 93.17 resistance, which intersects the upper channel border. This provides a reinforced resistance. This price area rejected yesterday’s upside move and has provided the pivot for today’s selloff. The lower channel border at 91.91 is the target for this move, but the support at 92.50 must be taken out first. A decline below the channel aims for 90.97.
On the flip side, a bounce from 92.50 arrests the descent towards 91.91 for the time being. 93.17 poses the first challenge to such a move. A breakout from the channel targets the 93.80 resistance, with 94.62 and 95.19 constituting further targets to the north.
USD Index Daily Chart