Dollar Lifted by Trump and Pompeo
Christophe Chevalier May 4, 2020 7:39 AM
Mike Pompeo and President Trump are accusing China in the Covid-19 outbreak.
U.S. Secretary of State Michael Pompeo has said that “enormous evidence” show the Covid-19 outbreak began in a laboratory in Wuhan. President Trump added on a Fox News interview that China "made a horrible mistake" which caused the coronavirus pandemic, and "they tried to cover it". These reactions tend to lift the U.S. Dollar on “fly to safety” bids.
From a technical point of view, on a daily chart, Dollar Index is searching for a trend line and stands between two trend lines and is trading around its 50-day moving average (in blue). The daily RSI stands around its neutrality area. Readers may therefore consider the potential for further advance in case of a break above April top at 101.00 which would lead to March high at 103.00. The nearest support would be set at Mar. 30 bottom at 98.30. A break below this threshold would lead to further weakness towards horizontal support at 97.40.
Source: TradingView, GAIN Capital