US Dollar looking for direction with France making traders nervous

US Dollar looking for direction with France making traders nervous

Bloomberg: US Dollar Index Technical Analysis: Concerns on France fuel the Greenback The US Dollar Index (DXY) might be moving in the coming two days due to some outside forces. One driver could come from the Eurozone, where France’s budget hangs in the balance. Should the balance not pass Parliament, France’s yields and spreads with other European countries could get out of control and trigger uncertainty for the Eurozone and the Euro (EUR), thus making the US Dollar (USD) outperform the shared currency.

With the profit taking this week, the pivotal resistance of 107.35 (October 3, 2023, high) became active again. The fresh two-year high at 108.07 reached last Friday is the level to beat further up. A brief spike to the 109.00 big figure level could play out in a volatile moment.

The DXY is bouncing off from 105.89, a pivotal level since May 2, which was held under profit-taking pressure on Wednesday. A touch lower, the pivotal 105.53 (April 11 high) should avoid any downturns towards 104.00. Should the DXY fall all the way towards 104.00, the big figure and the 200-day Simple Moving Average at 104.02 should catch any falling knife formation.

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