US Dollar Index: A soft close would imply a top at least in the short term and greater downside risks – Scotiabank

The dollar is trading lower. The economists of Scotiabank discuss the technical outlook for the US Dollar Index (DXY).

DXY is breaking below the uptrend support that has guided the market higher for much of May

“USD losses are widespread in the G10 FX market and while the DXY losses don’t look as significant at this point, the index has fallen for the third session in a row and short-term trading patterns show the index is breaking below the uptrend support that has guided the market higher for much of May.”

“A soft close on the day would imply a (technical) top in the DXY in the short term at least and more downside risk for the USD after its uninterrupted 3.5% run higher on the month.”

Source: Fx Street

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