Dollar Not Dead Yet!
The Dollar Index had a positive day, ending at a price of 76.48 (DXH8). Within the last week, we have seen a bit of a retracement around the 76 mark, with the DAX even dipping below this point for a brief period. However, we are back on the upside today. Of the major currencies, only the Australian Dollar and the Peso saw gains against the Dollar, while the biggest loser on the day in the currency world was the Canadian Dollar, closing out with a loss of just under .8%.
On the chart, the Dollar Index remains below the moving averages, which could be acting as a magnet for the greenback. If so, there is not much room for the bulls to run higher, with the next resistance level just below the 78 mark. Meanwhile, bears need keep in mind that the next level of support to the downside is just below 75 with nothing evident further down.
In related markets, the S&P 500 gained 18 points to cap the biggest day of a challenging year for the U.S. stock market thus far. Crude Oil lost .75%, while the 10-Year Note had slight gains.
Tomorrow brings initial claims and wholesale inventories numbers.
Mike Tosaw, Director of Education
