Can the USD Index Beat the 95.00 Mark As US Presidential Debates Kick Off?
The US Dollar index is lower today after the US Dollar lost steam across the board. Hopes of the passage of an additional coronavirus stimulus package was the talk of the grapevine over the weekend. On a day when US data was sparse, not even the upbeat Dallas Fed Manufacturing Index data could prop up the greenback.
The attention of the markets shifts to the US Presidential Debate, in which US President Donald Trump and Democratic Candidate Joe Biden will air their views on several key issues affecting global markets. This event could be a potential market mover, and the USD Index may feature prominently in the scheme of things.
Technical Outlook for USD Index
The US Dollar index is now testing the resistance at 94.61, following last week’s break from the trendline. A successful break of this resistance allows the DXY to aim for the 95.19 resistance, with 95.72 and 96.07 lining up as potential upside targets.
Failure to break the resistance could force a decline in the USD Index, with 93.80 forming the immediate downside target. Other potential targets to the downside are 93.17 and 92.50. 91.83 remains the lowest the index has been in 2 years, and it looks likely to be so unless there is a calamitous decline in the US Dollar.