Technical Analysis: USDX

USDX fell by pressure

On Wednesday, USDX fell by pressure. It ended down 0.50% at 101.26.

US JOLTs job vacancies in July were lower than expected

On Wednesday, the US Department of Labor released data showing that US job vacancies in July were 7.673 million, lower than the expected 8.1 million, falling to the lowest level since January 2021, and the previous value was revised down to 7.91 million.

The expansion of US economic activity slowed down

On Wednesday, the Federal Reserve Beige Book showed that the expansion of US economic activity slowed down from mid-July to late August, and companies reduced hiring. These signals highlight the reason why the Federal Reserve will start cutting interest rates later this month.

Technically speaking, the bearish market trend prevailed

the Chart of the Day 

On the chart of the day, the USDX fell yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, ATR went downwards after death cross occurred, showing the USDX will fall further. Investors should focus on whether the USDX will break through the support at 100.30. It will decline further with potential support at 99.20 if it breaks below 100.30.

4-hour chart 

On the 4-hour chart, the USDX was prone to fluctuation and decreased. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether the USDX will break through the resistance at 101.50. It will fall further if it rebounds but is capped at 101.50.

Key resistance: 101.50,101.85

Key support: 100.30,99.20

Generally speaking, lowered by multiple negative factors, USDX is more likely to fall in the short term. Investors should focus on US economic data during the day.