Published on May 1, 2023

Daily Analysis For US Doller Index 01-05-2023

US Doller Index Analysis

Economic Events and Scenario for US Doller Index

Economic Events : -

GMT	Event	Impact	Currency
00:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
01:00	(Austria) Labor Day	None	EUR
01:00	(Belgium) Labor Day	None	EUR
01:00	(China) May Day	None	CNY
01:00	(Cyprus) Labor Day	None	EUR
01:00	(Ecuador) Labor Day	None	USD
01:00	(El Salvador) Labor Day	None	USD
01:00	(Estonia) Spring Day	None	EUR
01:00	(Euro Area) Labor Day	None	EUR
01:00	(Finland) May Day	None	EUR
01:00	(France) Labor Day	None	EUR
01:00	(Germany) Labor Day	None	EUR
01:00	(Greece) Labor Day	None	EUR
01:00	(Ireland) May Day	None	EUR
01:00	(Italy) Labor Day	None	EUR
01:00	(Latvia) Labor Day	None	EUR
01:00	(Lithuania) Labor Day	None	EUR
01:00	(Luxembourg) Labor Day	None	EUR
01:00	(Malta) Labor Day	None	EUR
01:00	(Montenegro) Labor day	None	EUR
01:00	(Portugal) Labor Day	None	EUR
01:00	(Spain) Labor Day	None	EUR
01:00	(United Kingdom) May Day Bank Holiday	None	GBP
01:30	(Japan) Jibun Bank Manufacturing PMI	Medium	JPY
02:00	(Australia) TD-MI Inflation Gauge MoM	Low	AUD
02:30	(Australia) ANZ-Indeed Job Ads MoM	Low	AUD
06:00	(Japan) Consumer Confidence	High	JPY
07:30	(Australia) Commodity Prices YoY	Low	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
14:30	(Canada) S&P Global Manufacturing PMI	High	CAD
14:45	(United States) S&P Global Manufacturing PMI	High	USD
15:00	(United States) ISM Manufacturing Prices	Low	USD
15:00	(United States) ISM Manufacturing New Orders	Low	USD
15:00	(United States) ISM Manufacturing Employment	Medium	USD
15:00	(United States) Construction Spending MoM	Low	USD
15:00	(United States) ISM Manufacturing PMI	High	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD

Today's Scenario: - The US Dollar Index (DXY) is trading at around 101.70 during early trading on Monday, supported by its safe-haven status and hawkish Fed bets. Market fears surrounding the First Republic bank, as well as recently upbeat US data, are also contributing to the greenback's strength ahead of this week's Fed meeting and US Nonfarm Payrolls (NFP) releases.

The share prices of First Republic bank fell heavily last week due to a large exodus in deposits, prompting the Federal Deposit Insurance Corporation (FDIC) to call in bids for the troubled bank. Several top-tier private organizations, including JP Morgan, have bid for the bank's takeover, and the results are set to be released soon. However, this may only provide temporary relief as an immediate defense of the bank by a private player is not a solution to broader banking problems. On the contrary, it raises fears of similar actions for larger public banks in the future, which could keep the risk-off mood intact.

Buy Scenario: - On Friday, buyers pushed the US Dollar Index above its previous high of $101.940, signaling a change in the main trend to an upward direction. The next targets for buyers are at a Fibonacci level of $102.310, and then at a main top of $102.480. If the main top is surpassed, it will confirm the uptrend, and buyers will target a 50% level at $102.918. Till we do not advise to buy US Dollar Index.

Sell Scenario: - If the index experiences a pullback, the first support level is a minor pivot at $101.390. The next support zone is between $101.230 and $101.039, which is a short-term support area. If the index falls below this area, it will reach the main bottom of $101.039, and this will change the main trend to a downward direction. Till we do not advise to sell in US Dollar Index

Support and Resistance Level: -