The Dollar Index technical side paints another perspective to assist our trading. Last week the dollar rose 1.5%. The JPY and CHF are well known safe-haven currencies, but the USD is also a safe-haven and performed the previous week nicely because there is fear in the market. In addition to the election, November 5th highlights the FOMC with an interest rate decision.
Again, please be careful – this is not your average trading week. Technically speaking, the Dollar Index sits at a previous close of 94.040.
USD Key Levels:
Support: 93.76, 93.49, 93.33
Resistance: 94.19, 94.35, 94.62
Another factor to consider is the growing coronavirus infection rate worldwide. There are quite a few interwoven events this week. If you are a conservative trader, you may want to wait on the sidelines for a few days and if you are aggressive, keep an eye on the technical indicators for supportive help in your trades.
One thing is likely though: A U.S. Republican sweep would likely be dollar positive and a Democratic sweep, otherwise known as a “Blue Sweep,” should be dollar negative.
Thank you for reading today’s report. We hope you have the best of trading success.
