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ADXY Breaks Below 200D SMA

EMERGING MARKETS
  • Rising uncertainty in June amid Delta variant has increased preference for 'safe' asset such as the USD, sending the Asian DXY lower.
  • ADXY index broke below its 200D SMA (108.30) this week; next level to watch on the downside stands at 107.54, which corresponds to the 61.8% Fibo retracement of the 99.96 – 112.22 range, followed by 107.
  • On the topside, levels to watch stand at 108.75 (100D SMA), followed by psychological resistance at 109.
  • USD strengths could also continue to weigh on EM equities in the coming weeks (currency depreciation is usually associated with equity weakness in the EM markets).

Source: Bloomberg/MNI

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