The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
US dollar index continues to move lower
Yesterday saw the US dollar selloff continued apace, with price crashing down through the $94.20 target, to consolidate around $93.90.
Given the size of the overnight selloff, I would not be surprised to see some sort of retracement higher from here, but with such an important resistance level just above at $94.20, there is a possibility this could be short-lived.
A break back above $94.20 would point towards a more protracted retracement higher, at which point I would be watching for bearish reversal signals to cue another move lower. Medium-term downside support levels I am hoping to be hit are at $93.40, $93.17 and $92.75.