Dollar index between transition and Thanksgiving
Christophe Chevalier November 25, 2020 3:04 PM
Dollar index remains under pressure as U.S. Presidential transition has begun.
The U.S. dollar has resumed weakness against other major currencies as investors feel comfortable to bid for riskier assets. They were encouraged by news reports that formal transition for Joe Biden's potential administration has begun, and that Biden would appoint former Federal Reserve Chair Janet Yellen as his would-be Treasury Secretary. U.S. market will be closed tomorrow (and half session on Friday) for Thanksgiving.
From a technical point of view, on a daily chart, Dollar Index has struck against a former rising trend line and stands below its declining 50-day moving average (in blue). The daily RSI stands within its selling area. Readers may therefore consider the potential for further weakness as long as 93.35 is not broken to the upside. The nearest support would be set at September bottom at 91.75. A second one would be set at previous overlap at 90.50.
Source: TradingView, GAIN Capital
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