Published on Mar 20, 2023

Daily Analysis For US Doller Index 20-03-2023

US Doller Index Analysis

Economic Events and Scenario for US Doller Index

Economic Events : -

GMT		Event	Currency
06:00	-	(Estonia) PPI MoM	EUR
06:00	-	(Estonia) PPI YoY	EUR
07:00	-	(Germany) PPI YoY	EUR
07:00	-	(Germany) PPI MoM	EUR
08:00	-	(Switzerland) Myfxbook USDCHF Sentiment	CHF
08:00	-	(Australia) Myfxbook AUDUSD Sentiment	AUD
08:00	-	(Japan) Myfxbook USDJPY Sentiment	JPY
08:00	-	(European Union) Myfxbook EURUSD Sentiment	EUR
08:00	-	(United Kingdom) Myfxbook GBPUSD Sentiment	GBP
08:00	-	(Canada) Myfxbook USDCAD Sentiment	CAD
08:00	-	(New Zealand) Myfxbook NZDUSD Sentiment	NZD
10:00	-	(Euro Area) Balance of Trade	EUR
10:00	-	(Slovakia) Unemployment Rate	EUR
10:30	-	(Germany) 12-Month Bubill Auction	EUR
10:45	-	(European Union) EU Bond Auction	EUR
10:45	-	(European Union) 10-Year Bond Auction	EUR
11:00	-	(Luxembourg) Unemployment Rate	EUR
12:30	-	(Canada) New Motor Vehicle Sales	CAD
14:00	-	(France) 3-Month BTF Auction	EUR
14:00	-	(France) 12-Month BTF Auction	EUR
14:00	-	(France) 6-Month BTF Auction	EUR
14:00	-	(Euro Area) ECB President Lagarde Speech	EUR
15:30	-	(United States) 3-Month Bill Auction	USD
15:30	-	(United States) 6-Month Bill Auction	USD
16:00	-	(Canada) 5-Year Bond Auction	CAD
16:00	-	(Euro Area) ECB President Lagarde Speech	EUR
17:00	-	(El Salvador) Balance of Trade	USD
21:45	-	(New Zealand) Exports	NZD
21:45	-	(New Zealand) Imports	NZD
21:45	-	(New Zealand) Balance of Trade	NZD

Today's Scenario: - The US Dollar Index (DXY) is showing positivity following news over the weekend that suggests there will be more liquidity in the market. This, coupled with a recovery in Treasury bond yields, has put an end to a two-day downtrend, with the DXY trading near 103.80 as the new week begins. The increase in the greenback's gauge against six major currencies reflects optimism over more US Dollar-related liquidity and reduced fears surrounding recent banking sector turmoil. This comes ahead of Wednesday's important Federal Open Market Committee (FOMC) monetary policy meeting.

Buy Scenario: - The US Dollar Index is currently in a state of equilibrium, with its movement being limited by two opposing trends. The first is an upward trend that began in mid-February and is represented by a steadily rising support line. The second is a downward trend that emerged a week ago, marked by a descending resistance line. The support line is currently situated at around 103.60, while the resistance line is at approximately 104.40. Till we do not advise to buy US Dollar Index.

Sell Scenario: - The US Dollar Index remains under pressure and continues to trade below the 104.00 level. The rest of the markets are experiencing a range-bound theme. The fear caused by banking concerns has decreased, which is leading to a selling bias in the dollar. Investors are becoming more confident in the likelihood of a 25 bps rate hike by the Federal Reserve at the upcoming meeting on March 22, which is contributing to the selling pressure.

Although there is a renewed belief that the Federal Reserve may shift its stance in the short-term, this sentiment may continue to depress the price of the dollar. However, the US economy's strength and high inflation rates could counteract this viewpoint. Till we do not advise to sell US Dollar Index.

Support and Resistance Level: -