Since May 8th, the US Dollar is trying to regain the lost ground against other majors. The American currency has been strong since the beginning of this trading week.
Yesterday, the price set a new local high at 80.19. At the beginning of the da, the USD index
Retraced back to 80,00, thereby creating a narrow price range. So, today, it is trading in the mentioned price range.
According to Masterforex-V Academy, the most important economic report for the index is the US PPI (producer price index). This one is scheduled for 12:30 GMT. Analysts assume that this index measuring inflation will show 0,2% this time. Last time, it was 0,6%.
Economists assume that the inflation pressure remains curbed and is not going to prevent the US Dollar from continuing its growth.
Near-Term Prospects of USD Index
According to the trading experts of Masterforex-V Academy, the H4 chart of the index indicates that the long-term bearish move (80.72-78.89) is completed at this point.
A rally has been going on since May 8th 2014 starting from 78.89. At this point, the recovery is more than 61,8% of the preceding bearish move (80.72-78.89).
Today's trading session shows that the rally has been suspended at 80.19, after that the price started fluctuating within the scope of the mentioned 80.00-80.19 price range.
The chart indicates that the price has already broken the internal MF sloping channel (marked dashed blue). This hints at the end of the move.
The following levels of resistance hold true today:
80.19 + 80.30 + sloping channel + 80.68.
The following levels of support hold true today:
80.00 + 79.87; 79.58; 79.05 + 79.89 (May's low).
