Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The U.S. Dollar is trading sharply lower against a basket of currencies late Friday after a survey of purchasing managers showed U.S. business activity in the manufacturing and services sectors stalled in February as companies have grown increasingly worried about the impact of the coronavirus on the U.S. economy. Most of the losses in the index are being fueled by a surge in the Euro, its biggest component. The Japanese Yen is also rebounding after dropping about 2% this week.

At 17:54 GMT, March U.S. Dollar Index futures are trading 99.180, down 0.596 or – 0.60%.

The Euro was about 0.6% higher against the greenback. Business activity in the Euro Zone picked up more than expected this month, a business survey showed on Friday, in welcome news for policymakers at the European Central Bank, who are trying to revive growth and chronically low inflation.

The British Pound rose against the U.S. Dollar after British factories reported the fastest rise in output for 10 months in February, assuaging some fears over the economy as Britain prepares for trade talks with the European Union. The Sterling was up 0.53% against the greenback.

Daily March U.S. Dollar Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 99.815 will signal a resumption of the uptrend. The main trend will change to down on a trade through 97.165.

A close below 99.020 will form a potentially bearish weekly closing price reversal top.

The minor trend is also up. A trade through 98.580 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 98.580 to 99.815. Its 50% level or pivot at 99.200 is currently being tested.

The main range is 97.165 to 99.815. Its retracement zone at 98.490 to 98.180 is the next major downside target.


Daily Technical Forecast

Based on the early price action and the current price at 99.180, the direction of the March U.S. Dollar Index into the close on Friday is likely to be determined by trader reaction to the minor pivot at 99.200.

Bullish Scenario

A sustained move over 99.200 will indicate the presence of buyers. The first target is an intraday pivot at 99.480. This is followed by the minor top at 99.815.

Bearish Scenario

A sustained move under 99.200 will signal the presence of sellers. The first downside target is the uptrending Gann angle at 99.040.

The Gann angle at 99.040 is a potential trigger point for an acceleration to the downside with the next major target zone 98.490 to 98.180.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk