- The DXY Index is moving higher, threatening the 20-day SMA near the 104 level.
- The US services sector grew in November, according to the ISM.
- Investors are eagerly awaiting reports on the unemployment rate and nonfarm payrolls due out this Friday.
He US dollar (USD), As measured by the Dollar Index (DXY), it is rising and is currently trading near 104.00, while posing a threat to the 20-day SMA at 104.05. This move is largely attributed to the release of a better-than-expected November Institute for Supply Management (ISM) services PMI.
Meanwhile, investors are focused on key employment figures due this Friday, specifically the November unemployment rate and Non-Farm Payrolls, as they could suggest further directional moves for the Dollar.
Despite the cooling of inflation in the US economy and the mixed signals from the labor market and economic activity, the Federal Reserve (Fed) still does not rule out further tightening of its monetary policy. This somewhat hawkish stance coincides with the release of key jobs data this week, which could dramatically change market expectations.
Daily Market Movements: US Dollar Gains Momentum on Strong ISM Services PMI
- The US Dollar is trading strongly on Tuesday, threatening the 20-day SMA near 104.00.
- The Institute for Supply Management’s November report revealed that the ISM Services PMI surpassed consensus and previous numbers at 52.7, further boosting the US dollar’s advance.
- The latest report from the US Bureau of Labor Statistics indicated that October JOLT job openings fell by almost 600,000, to 8.733 million. This figure was well below the consensus of 9.35 million.
- Looking ahead, the unemployment rate, Non-Farm Payrolls and average hourly earnings will be released on Friday. These figures will have significant implications for investors and the trajectory of the US dollar, as they could shape the Fed’s upcoming decisions.
- Current market expectations, according to CME’s FedWatch tool, indicate that there will be no rate hike at the December meeting and that markets are forecasting rate cuts by mid-2024.
Technical Analysis: Dollar bullish momentum strengthens, buyers threaten 20-day SMA
The indicators on the daily chart clearly show a strengthening of the US Dollar’s bullish momentum. Although in negative territory, the Relative Strength Index (RSI) shows a positive slope, while the Moving Average Divergence (MACD) prints ascending green bars, offering confirmation of the prevailing bullish strength.
As for the longer-term scenario, the index is currently trading below the 20-day and 100-day SMA, but above the 200-day SMA. This means that overall, although experiencing some short-term pressure, the bulls continue to show their presence in the bigger picture. This outlook points to a firm upward trajectory. In case buyers advance and conquer the 20-day SMA, further rises are possible in the short term.
Support levels: 103.60, 103.30, 103.15, 103.00.
Resistance Levels: 104.10 (20-day SMA), 104.40 (100-day SMA), 104.50.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.