Weekly Technical US Dollar Forecast: Finally Turning Higher? Advertisement
Technical Forecast for the US Dollar: Neutral
The DXY Index has held onto key technical support, suggesting that bulls may have a bit more fight left yet.
Net-short US Dollar futures positioning has eased as the DXY Index has rallied, but has not shifted that significantly from levels seen going back to mid-December 2020.
The IG Client Sentiment Index suggests that the Euro, the largest component of the DXY Index, has a bearish bias in the near-term.
US Dollar Rates Week in Review
The US Dollar (via the DXY Index) was having lackluster week until Thursday (even as Fed Chair Jerome Powell testified on Capitol Hill), when it seems the uptick in US Treasury yields finally spilled over to FX markets, lifting the greenback through Friday into the weekly close. The DXY Index rallied by +0.57%, its second best weekly performance year-to-date, just behind the second week of January (+0.70%).