Decline in Consumer Confidence lifts the Dollar index

Federal reserve USD $100 note
Yesterday, the Conference Board Consumer Confidence Index unexpectedly declined to 100.9 in October, below 102.0 expected. The While House also hinted that a fiscal stimulus deal is unlikely before the Nov. 3 election. Later today, September wholesale inventories are expected at +0.4% on month.

From a technical point of view, on a daily chart, Dollar Index is rebounding on its former declining trend line and is challenging its 50-day moving average (in blue). The daily RSI is rebounding. Readers may therefore consider the potential for further advance as long as 92.50 is not broken to the downside. The nearest resistance would be set at strong horizontal resistance at 94.00. A second one would be set at Sept. 25 top at 94.75.

Source: TradingView, GAIN Capital


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