DXY Market Outlook
With a 7% range containing this vehicle for most of the year, the Dollar Index has continued in a sideways pattern for the bulk of 2015 within the narrows of the 93 and the 99 levels with the occassional breaks above and below.
All the other majors have been facing internal issues of their own – from the policy dilemma faced by the ECB to the never ending low inflation/low growth structural issues in Japan. The sum total effect of all these influences is that the Dollar Index is by far the “lesser devil” of choice.
Any worsening of the issues faced by the other majors, could lead to a further hastening of this trend with breakouts over the 100.00 (par level for the index), assuming a life of its own.
The US Dollar Index has been in a corrective phase for last one month. It is wavering within a range without any clear direction. A volatile breakout may help to find the market trend. A breakout above 100.50 will indicate continuation of the previous uptrend while a breakdown below 98.00 may spur momentum to the downside.