The US dollar index, a measure of the USD’s value against a weighted basket of foreign currencies. During the last week, the King dollar ended higher after the 8-week losing streak boosted by the release of the FOMC minutes which provide both caution and less dovish tones. The dollar also received continues support on Friday after better-than-expected the US home sales and PMI data.
This week the traders and Investors will likely keep a look at the preliminary figures of the US Q2 GDP and the Fed’s Jackson Hole symposium on how the monetary policy of the US could develop soon. The last GDP figures showed that the US economy faced the deepest decline in decades. If this week data show some rebound in the last quarter will support the dollar recovery. The Jackson Hole symposium, which will take place as an online conference on Thursday, at which Jeremy Powell will have to outline the updated guidelines of the Fed in shaping monetary policy.
Dollar Index technical outlook
The dollar index closed higher on Monday. The greenback currently faces an important resistance level at 93.50. At the time of writing, the US dollar index is trading around 93.15. If the bullish momentum continues then the next upside level to watch 94(Monthly high). On the downside, any meaningful pullback now seems to find some support near the 92.50 zones, below which the slide could further get extended towards the 92/91.80 region.
The expected trading range for USD this week is between 92.00 support and 94.00 resistance. I do not expect USD will make a new low this week.
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