September 27, 2021

Dollar recovers, retains sideways range

The US Dollar Index has risen well in the past week. The euro coming off and failing to rise past 1.19 has taken the dollar index higher. The European Central Bank’s decision to slow down the pace of its asset purchase under the pandemic stimulus programme did not have a major impact on the euro. Broadly, the range support at 92 on the dollar index has held well and is keeping intact the broad range of 92-94.

The US Dollar Index (92.64) had managed to sustain above 92 and has risen back in the last week. As mentioned in this column a couple of weeks back, 91.80 is a crucial support for the index. That seems to be holding well. The recent bounce has happened from the low of 91.95. It will now be important to see if the Dollar Index breaches 93 from here. A strong break above 93 is needed to reduce the danger of breaking below 91.80. Such a break can bring back the bullish momentum…

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