ICE U.S. Dollar Index: A New Down Trend Expected

Forex trading

The U.S. dollar remained weak against other major currencies, as traders kept selling the currency after Federal Reserve Chair Jerome Powell reiterated on Thursday the needs for more fiscal and monetary stimulus.

On the economic data, the U.S. Labor Department reported that the economy added 638,000 nonfarm payrolls in October (+580,000 expected, +672,000 in September) and the jobless rate dropped to 6.9% (7.6% expected).

On a technical point of view, the index retreated after rebounding to the 50% retracement on a daily chart. After that the prices broke below the rising trend line drawn from September, indicating that corrective rebound is possibly over. Currently, the prices are trading below both 20-day and 50-day moving averages.

Bearish readers could set the resistance level at 94.15, while support levels would be located at 91.75 and 89.45.

Source: GAIN Capital, TradingView

Related tags: DXY Forex

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