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DXY and S&P 500: what are the prospects? – Analytics & Forecasts – 15 August 2022


Aug 15, 2022
DXY and S&P 500: what are the prospects?

Today, futures for major US stock indices are falling, while the dollar index is rising. As of this writing, DXY futures are trading near 106.08, 57 pips above Friday’s close.

Now, after the breakdown of the local resistance level of 106.00, the breakdown of the next “round” resistance level of 107.00 will be a confirming signal for the resumption of growth in DXY and the strengthening of the dollar.

Moreover, market participants again paid attention to the dollar as a defensive asset due to the escalation of tension around Taiwan: last weekend, following Nancy Pelosi, a delegation of American legislators arrived on the island, fueling tensions between the US and China.

Today, there are no important publications in the economic calendar (for more details, see the Most Important Economic Events of the Week 08/15/2022 – 08/21/2022). Due to the lack of new drivers, including news ones, further strengthening of the dollar and a decrease in stock indices are likely, but so far – in the form of a correction after a strong growth.

The S&P 500 has returned to the bull market zone, having broken the 4185.00 resistance level last week, and for now, it is necessary to focus on the possibility of opening long positions (for more details, see “S&P 500: technical analysis and trading recommendations for 08/15/2022“).

Support levels: 4200.00, 4185.00, 4150.00, 4114.00, 4100.00, 4040.00, 3670.00, 3600.00

Resistance levels: 4277.00, 4300.00, 4400.00, 4540.00, 4630.00, 4810.00

Image and article originally from www.mql5.com. Read the original article here.