Draghi speaks, Dollar Index clocks fresh 15-month low
The Dollar Index [DXY] fell to a fresh 15-month low of 92.42 after ECB President Draghi, while speaking at the Jackson Hole Symposium, refrained from commenting on the EUR exchange rate.
The resulting spike in the EUR/USD yielded another leg lower in the USD across the board.
Draghi’s silence on the exchange rate means the central bank is not as alarmed by the recent appreciation in the EUR as previously thought.
His US counterpart, Yellen, also disappointed the hawks earlier today by avoiding the policy talk. Yellen’s speech was a recitation of the financial crisis, regulatory failures and how things have improved since then.
Dollar Index Technical Levels
The index currently trades around 92.48. A break below 91.92 [May 2016 low] would expose monthly 50-MA of 91.73, under which a major support is seen directly at 90.00 [psychological levels]. On the higher side, a break above 92.93 [Aug 11 low] could yield a technical rally to 93.44 [daily high] and 93.63 [Aug 23 high].
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