Dollar Index Outlook for March

Posted by Lulama Msungwa -
Scope Markets

Kep points

The dollar index has been making a zigzag movement in recent weeks

The dollar index started the month of March at a firm position after holding the level of $90 throughout February. The market has failed to respect the expected bearish outlook. This happened even after the stock market rallied higher and the approval of Joe Biden’s stimulus program. The strong support level has managed to keep the dollar stable. This is in spite of the market moving in consolidative mode and failing to find a trend direction.

DXY has been responding to the movement of the bond yields, which has been rallying up. Many Americans have been taking their money out of stocks to buy bonds, and they are using dollars to buy. This has given the dollar a much-needed demand to stay above the $90 level.

The dollar index continued its rally on Friday. This comes after a strong February jobs data that reported better than expected. It put the dollar in a firm position against other major currencies such as the Euro and the Pound.

The dollar index traders will continue to monitor the strength of the bond yields and should the yields continue to rise. There could be a strong demand to strengthen the Dollar to stay above the $90 level.

Technical outlook

According to the daily swing, the dollar index is on an uptrend movement after failing to stay below the level of $90 as the markets anticipated more losses on the Index. The strong support level of $90 has managed to keep the index above the $90 level, with the pair advancing against the basket of major currencies.

US Dollar Index Futures daily timeframe Scope Markets
US Dollar Index Futures daily timeframe

The recent rally in the bond yields has pushed the market above $91, with bond yields strengthening the market demand for the bullish rally. A solid movement above the resistance level of $93 will indicate the presence of buyers. Thereby creating a strong upside momentum needed to challenge the September 25 level of $94.70.

Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Funding Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize


+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the International Financial Services Commission of Belize (“IFSC”) under the license numbers 000274/222 and 000274/221. The registered address of Scope Markets Ltd is, 6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2020 Scope Markets. All Rights Reserved.