US DOLLAR PRICE OUTLOOK: ISM SERVICES/NON-MANUFACTURING PMI & JOBS DATA DUE
- US Dollar[1] takes another spill as EUR/USD[2], GBP/USD[3], and AUD/USD[4] continue to surge
- DXY Index drops below the 98.00 price level as USD/CAD[5] weakness offsets USD/JPY[6] strength
- ISM services/non-manufacturing PMI and ADP employment data on deck for release during Wednesday’s trading session
The US Dollar keeps bleeding lower. This sets the DXY Index on pace for its six-straight day of downside as the broader US Dollar sinks nearly 3% since its 18 May high. USD[7] selling pressure appears far-felt with the Greenback weakening considerably against other major currencies[8] like the EUR[9], GBP[10], AUD[11], and CAD[12] over recent trading sessions.
DXY INDEX – US DOLLAR PRICE CHART: WEEKLY TIME FRAME (OCT 2017-JUN 2020)
Chart created by @RichDvorakFX[13] with TradingView[14]
US Dollar price action continues to face headwinds largely stemming from a prolonged influx of coronavirus optimism[15]. The improvement in market sentiment and trader appetite for risk has weighed negatively on safe-haven currencies[16] such as the US Dollar. The recently-adopted Fed backstop[17] has helped alleviate USD funding pressure and likely serves as another primary bearish driver steering the US Dollar lower.
With the US Dollar hemorrhaging[18], perhaps the 100-week exponential moving average[19], which is also underpinned by a key Fibonacci retracement[20] level of the February 2018 to March 2020 trading range formed by the DXY Index, could provide an area of buoyancy for the US Dollar.
