Dollar index: US stimulus still in talks

Federal reserve USD $100 note
US Treasury Secretary Steven Mnuchin has said he presented a $916 billion stimulus proposal to House Speaker Nancy Pelosi. This is a slightly larger package than the bipartisan proposal of $908 billion. But Nancy Pelosi answered on Twitter that “the President’s proposal, which cuts unemployment insurance by $140 billion compared to the framework, is unacceptable”.

From a technical point of view, on a daily chart, Dollar Index is trading within a bearish channel and is capped by its declining 50-day moving average (in blue). The daily RSI stands within its selling area. Readers may therefore consider the potential for further weakness as long as 92.55 is not broken to the upside. The nearest support would be set at December bottom at 90.50. A second one would be set at March 2018 low at 88.90.

Source: TradingView, GAIN Capital


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