The DXY index fell from a high of 107.35 and closed the week at 106.04, breaking an 11-week uptrend. Previously, the currency soared above the 107 mark after the US employment data was released, but fell sharply at the end of the week when the pace of wage growth also slowed down. Wage data showed monthly wage increases remained moderate, with average hourly earnings up 0.2%, following a similar increase in August. Year-on-year, wages rose 4 .2% in September, down from a 4.3% increase in August. US nonfarm payrolls increased by 336,000 in September, well above market expectations of a 170,000 increase.
The DXY (106.04) index is currently at the critical support level of 105.90. A break below this level could signal a downside correction to 105 and even 104 for the index. On the other hand, a rebound from the current level and a rise above the 106.50 mark will help the greenback continue to maintain its upward momentum, even rising to the 107.50-108 area. Price movements early this week should be closely monitored.
Meanwhile, for the Euro, the upward adjustment to 1.06-1.07 mentioned last week has taken place this past week. This week, it may rise to the 1.0650-1.07 area, and then the Euro may reverse downward and continue its downward trend to 1.05, or even 1.04. This index needs to increase beyond 1.07 to bring the prospect of rising prices to 1.08 or even higher.
The DXY (106.04) index is currently at the critical support level of 105.90. A break below this level could signal a downside correction to 105 and even 104 for the index. On the other hand, a rebound from the current level and a rise above the 106.50 mark will help the greenback continue to maintain its upward momentum, even rising to the 107.50-108 area. Price movements early this week should be closely monitored.
Meanwhile, for the Euro, the upward adjustment to 1.06-1.07 mentioned last week has taken place this past week. This week, it may rise to the 1.0650-1.07 area, and then the Euro may reverse downward and continue its downward trend to 1.05, or even 1.04. This index needs to increase beyond 1.07 to bring the prospect of rising prices to 1.08 or even higher.
