Short Opportunity in The US Dollar Index – Technical Analysis

The US Dollar index is trading lower despite a better than expected trade deficit data. The Bureau of Economic Analysis announced today that the total amount of exports and imports resulted in a goods and service deficit of $34.2 billion, down from $44.1 billion in the previous months of May. Wall Street has translated the lower imports data into lower domestic demand for consumer goods.

The data released have increased the possibility of having a higher GDP in the second quarter. These, has had no a positive impact in Wall Street nor in the US dollar index, which is trading in a down trend, and at a level where it has typically encounter strong support.

A break below the support level of 81.60 could push the index to the next retracement level around the $80.987 mark.

In term of economic data, the rest of week will be rather quieter, with Jobless claims of Thursday expected to be higher. If so, there is a good chance that US dollar index continue in bearish territory and will ended the week even lower.

usdollarindex

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