August 5, 2020 US Dollar Index Analysis

August 5, 2020 US Dollar Index Analysis

• DXY is continuing to lose more power and is trading near 93.00 support. • The attention of the markets has been turned into the US political scenario. • ADP report, Trade Balance, ISM Non-Manufacturing data are also on the agenda. When the US dollar is measured by the US Dollar Index (DXY), it is trading far from the key support point of 93.00. US Dollar Index Focused on Data The index dropped a second consecutive session on Wednesday. Alongside the key support at 93.00, it traded at the lowest levels of 3 days. The dollar continues to recover from lower levels, mostly amid a technical jump, in response to a fall in the oversold zone, after falling from the highs of 94.00 from Monday's highs. Meanwhile, the attention has been turned over the US political scenario where the coronavirus stimulus package is trapped between the discussions of the Republicans and the Democrats. Later, the US agenda will be supported by the APD monthly report, June Trade Balance figures, July non-manufacturing ISM data, and the EIA's weekly report on US Crude Oil Inventories. Currently, the index is at 93.03, with a 0.25% drop in value. The next support appears at 92.55, the second support at 91.80, the last support at 89.23. On the other hand, a break above 93.99 can target the 94.20 level.