Forex Chart Of The Day: Is The USD Index Heading Towards $99.00?

The price of USD Index is at a key weekly low, if the price trades through these lows we could see the USD weakness continue. Will the price reach $99.00 on the USD Index?

Watch the video to learn more…

USD Index

The price of the USD Index could be heading towards the $99.00 highs. The Federal Reserve Meeting minutes revealed the FOMC considered a rate hike pause. We also saw a concern among several members regarding the US banking crises. In the report we saw Core CPI being a sticking point for the Fed which suggests another 25 basis points is to come. PPI or Producer Price Index fell today from 0% to -0.5% adding further downside pressures to the USD. 

On the weekly chart, the price is holding at the current weekly swing lows of 100.83. If the price rejects here then we may see some USD recovery into the minor resistance levels around 101.50.

However, if the USD news continues to highlight further weakness, then the USD Index may break below these lows. This would see selling pressure take the USD Index price to the $99.00 highs. 

USD Index

The price on the chart has traded through multiple technical levels and some observations included:

• Price is in an bearish impulsive phase on the weekly chart.
• This can lead to a downward trend forming on a lower time frame.
• The daily time frame is highlighting lower highs and lower lows, the characteristics of a downward trend. 
• If the price breaks through the weekly lows of 100.83 it could see sellers take the price to 99.00.

Have you watched our GBPUSD analysis? You can see it here. 

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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