The dollar index, which measures the US currency against six major rival currencies, has strengthened around 7 per cent so far in 2022. US Dollar index has reached the important resistance area 103. Let’s wait for the confirmation of breakout or reversal. For the last 6 years, the US Dollar index has moved between these support and resistance zones.
Why US Dollar is getting strong?
Increasing covid cases in China and stringent lockdowns pose risk to global recovery. Markets remain risk-averse, seeking safety in the US dollar. This is one of the main reasons for the US Dollar to get stronger at this time.
EURUSD hit the major support area in the monthly timeframe chart.
All US Dollar pairs are mostly standing now at the important price areas. Let’s wait for the confirmation of breakout or reversal.
USDCAD has reached the important Resistance area in the daily timeframe chart. Let’s wait for the confirmation of breakout or reversal from this zone.
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