Technical Analysis: USDX

The USDX Rebounded from a Low Level

On Wednesday, the USDX rebounded from a 3-month low. It broke above the 103 mark at one point. It ended up 0.10% at 102.84.

US Quarter 3 Economic Growth Rate was Revised as 5.2%

US GDP, y/y (Quarter 3) increased from 4.9% to 5.2% Vs. 5% (forecast), according to the data from the US Department of Commerce on 29^th November.

As investments in non-residential fixed assets and private inventories increased, economic growth increased at a faster pace, according to the US Department of Commerce.

The Fed is in no hurry to raise the interest rate again, many officials said

On Wednesday, many officials at the Fed spoke. Atlanta Fed Governor and Cleveland Fed Governor supported the Fed in keeping the interest rate unchanged in December. Stubborn inflation risk means the Fed is still likely to increase the interest rate in the future, Richmond Fed Governor said.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, the USDX was prone to fluctuation and declined. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing the USDX will fall further. It will decline further with potential support at 101.8 if it breaks below the support at 102.4.

4-hour chart

On the 4-hour chart, the USDX was prone to fluctuation and declined. The bearish market trend prevailed in the short term. In terms of technical indicators, RSI went downwards after death cross occurred, showing the USDX will fall. Investors should focus on whether the USDX will break through the resistance at 103.2. It will fall further if it rebounds but is capped at 103.2.

Key resistance: 103.2, 103.9

Key support: 102.4, 101.8

Generally speaking, although US economic growth was higher than expected, the expectation that the interest rate increase has come to an end rose. As a result, the USDX is more likely to fall further. Investors should focus on US economic data and the Fed officials’ speeches during the day.