(MENAFN- DailyFX) US Dollar Index price, news and analysis: The US Dollar is continuing its recent advance despite an unhelpful news background. That suggests its gentle climb higher may continue for a while yet. USD Index climb could extend higher
The US Dollar index (DXY) is proving resilient despite an unhelpful news background, implying that its advance over the past week could well extend further.
In the news:
The US-China trade dispute shows little sign of resolution, with US Trade Representative Robert Lighthizer reportedly seeing no progress on structural issues during talks between the US and China last week. The row over the partial US government shutdown also shows no sign of ending, with US President Donald Trump and his opponents continuing to blame each other. Esther George, who has been one of the most hawkish members of the Federal Reserve, has urged her rate-setting colleagues to be patient and pause before considering additional increases. And the weakness of the Chinese economy and by extension the global economy has been emphasized by news Wednesday that the Chinese central bank injected a record $83 billion into the country's financial system to avoid a cash crunch. Yet the DXY has continued to climb, perhaps helped by its continuing role as a safe haven, alongside the Japanese Yen and the Swiss Franc .
US Dollar Index Price Chart, 30-Minute Timeframe (January 10-16, 2019) Chart by IG (You can click on it for a larger image)
As the chart above shows, over the past week DXY has continued to record a series of higher highs and higher lows, with little near-term resistance now visible on the chart ahead of Tuesday's 95.72 high and then the 96.0 round number, last reached on January 4. Meanwhile, there is support on the downside from the three moving averages shown above, ahead of trendline support around 95.0.
The yield on the 10-year US Treasury note is also continuing to edge higher after touching its lowest level for around a year early this month potentially making the Dollar more attractive to investors.
More to read: How to Trade the US Dollar Index: Trading Strategies & Tips
A Brief History of Trade Wars
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