The U.S. Dollar is on the defensive again versus a group of major currencies on Tuesday as rising optimism that U.S. lawmakers could agree on new fiscal stimulus to blunt the economic impact of the coronavirus dampened demand for safer assets.
Risk appetite also improved after U.S. President Donald Trump left the hospital and returned to the White House following treatment for COVID-19, a development viewed as reducing political uncertainties in the near-term.
At 14:20 GMT, December U.S. Dollar Index futures are trading 93.475, down 0.070 or -0.07%.
The lead taken by Trump’s presidential opponent Joe Biden in electoral polls ahead of next month’s election is also seen as negative for the U.S. currency, according to Reuters.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, but momentum is trending lower. The main trend will change to down on a trade through 92.755. A move through 94.795 will signal a resumption of the uptrend.
The minor trend is down. This is controlling the momentum. A trade through 94.090 will change the minor trend to up.
The first minor range is 92.755 to 94.795. Its 50% level at 93.775 is resistance.
The second minor range is 91.750 to 94.795. Its 50% level at 93.275 is potential support. It’s also the last support before the 92.755 main bottom.
Daily Swing Chart Technical Forecast
The December U.S. Dollar Index is currently hovering above 93.275. This suggests that buyers are coming in to defend the uptrend. Trader reaction to this level will determine the intraday direction of the market.
A sustained move over 93.275 will indicate the presence of buyers. The first upside target is 93.775. Overtaking this level will indicate the buying is getting stronger. This could lead to a test of the minor top at 94.090.
A sustained move under 93.275 will signal the presence of sellers. This could trigger an acceleration to the downside with 92.755 the next likely downside target. A trade through this price changes the trend to down.
For a look at all of today’s economic events, check out our economic calendar.