November 20, 2023 09:04 GMT
2% Pullback in USD Index Triggering Breaks of Key Tech Levels
- Picking up where it left off on Friday, the USD Index is again weaker and has touched the lowest level since early September this morning. This extends the post-CPI pullback to ~2% for the USD Index, and a close at current or lower levels would mark the first confirmed break and close below the 200-dma since Dec'22.
- The main beneficiaries this morning are the JPY, AUD and NZD - and AUD/USD strength has resulted in a clear break of resistance at 0.6522, the Aug 30 and Sep 1 high. The breach is an important short-term bullish development and signals scope for a continuation higher towards 0.6582.
- Meanwhile, USD/JPY's reversal is gathering pace and the Friday/Monday step lower has put prices below the uptrendline drawn off the late August lows. Downside momentum also picking up on the show below the 50-dma - the first since July.