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  • Saturday, 8 February 2020

    Dollar Index maintains bullish Strength

    The US dollar has experienced some buying momentum this January and February after losing a lot of strength in December which took a very strong drop after there was an interest rate decrease in early December and low Employment Change.

    NFP Influence
    The Nonfarm Employment change has influenced the dollar last Friday which caused a significant increase in the value of the dollar index, the employment change improved from 147k  to  225k which means that more employment opportunities were created in January compared to December giving a thumbs up to the American Economy.




    Dollar Index Technical

    The dollar index has been showing a lot of strength previously as the american dollar index has moved more than 250pips upwards showing a strong recovery. on the chart below the dollar index has just broke and retested the fib level 61.8 giving it a clear go ahead to the upper OTE zone in which we looking at the dollar reaching the price of 99.300 late in February.


    An increase on the dollar index will affect a number of currency pairs assosiated with the dollar index in the upcomming weeks, we should expect pairs like the EurUsd and XuaUsd to continue dropping and UsdCad to continue moving up. 



    Sifiso Nkwanyana

    Author & Editor

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