• American dollar trades sideways, uncertain, where to go further.
• US President Trump stopped the Mexico and Canada tariffs, while China hit their own tariffs on the US import.
• The American dollar index (DXY) maintains the ground above 108.00, looking for a direction among all these tariff headers.

The American dollar index (DXY), which tracks the efficiency of the American dollar compared to the six main currencies, looks gloomy on Tuesday after the first reach of 109.00 before it returns to a lower level of 108.37 in European trade. DXY trades around 108.50 at the time of writing. Markets react to a mixture of headers with a breath of relief from Mexico and Canada, in which the application of American tariffs has been delayed. Meanwhile, China took revenge against the tariffs of the US President Trump, issuing their own fees on the US imported goods.

The economic data calendar takes its shape towards Friday pay data. The report on job offers in the US will be published later during the day and can give more insight into the tightness of the labor market. In addition, two Federal Reserve speakers (FED), President Atlanta Fed Raphael Bostic and President San Francisco Fed Mary Daly will speak and can leave comments for markets to consider.

Daily Digest Market Movers: Eye to the eye

• On Tuesday, China announced a 15% fee for less than $ 5 billion in US energy imports, such as coal and liquid natural gas (LNG), and 10% of the fee for American oil and agricultural devices, and will also examine Google for alleged antitrust violations, informs Bloomberg. Meanwhile, Canada and Mexico see delayed tariffs imposed by the US thanks to their actions in compliance with US President Donald Trump.
• At 15:00 GMT one belongs to monthly factory orders in December. The expectations apply to a further decline by -0.7% from -0.4% in the previous month.
• At the same time, Technometry Institute of Policy and Politics (TIPP) will issue a monthly reading of economic optimism in February. The consensus concerns growth to 53, comes from 51.9.
• Opening of work in the USA in December will also be published. A miniature decline is expected to up to 8 million job offers, compared to 8.098 million in November.
• The federal reserve also has two speakers in the queue:
  • President Atlanta Fed, Raphael Bostic, moderates a conversation with the mayor of Atlanta Andre Dickens at a meeting of the Task group for housing crisis in Atlanta at 16:00 GMT.
  • President of Fed San Francisco Mary Daly will take part in the annual panel of economic forecasts of Walter E. Hoadley, run by the Commonwealth Club World Affairs of California at 19:00 GMT.
• The actions are mixed with some miniature profits and losses both in European indexes and Futures in the USA.
• The CME Fedwatch tool designs 86.5% chances of maintaining interest rates unchanged at the next Fed meeting on March 19.
• The US 10-year profitability is about 4.585%, compared to its fresh annual low level 4.46% apparent on Monday.

American dollar index Technical Analysis: Market War of Financial Markets

The American dollar index (DXY) is everywhere, although the magnification is not going anywhere. The range is defined as 107.00 in minus and 110.00 for the advantage. Expect that DXY’s maintenance range will be trading between these two major levels for now.

On the other hand, the first barrier at 109.30 (July 14, 2022, height and growing trend line) was briefly exceeded, but it did not take place on Monday. After recovering this level, the next level, which should be achieved before promotion, is 110.79 (September 7, 2022, High).

On the other hand, a 55-day straight moving average (SMA) at 107.75 and 3 October 2023, height at 107.35 acts as double support for the DXY price. For now, it looks like holding, although the relative force indicator (RSI) still has some room for a disadvantage. Hence, look for 106.52 or even 105.89 as better levels.

American dollar index: daily chart