US Dollar being the base currency has been bearing the brunt from all sides. From FOMC to OPEC to Trade war to Employment data, all have left a mark on the greenback. Though the US corporate earnings have started on a good note lifting the equity indices higher, the currency has not been able to lift itself northwards.
The weighted geometric mean of dollar’s value relative to basket of 6 trade partner currencies (% weight), namely Euro (EUR – 57.6%), Japanese Yen (JPY – 13.6%), Pound Sterling (GBP – 11.9%), Canadian Dollar (CAD – 9.1%), Swedish Krona (SEK – 4.2%) and Swiss Franc (CHF – 3.6%) called the Dollar Index indicates how dollar fares globally.
Using the technical tools, in the daily chart, the current level of Dollar index at 94.0 is taking minor support at the 23.6% Fibonacci retracement line and next support is seen at 93.121 at 38.2% fib level. The index seems bearish in the near term and should seek support at the above levels. As the momentum indicator MACD shows its almost crossing below the zero line, a possible sell signal is being generated.