US Dollar steady as US traders return from Thanksgiving

• US Dollar Index falls near 106.00 on a quiet Friday.
• DXY stands soft as US markets open on Black Friday after remaining closed on Thursday.
• The hawkish Fed and strong economic outlook from the US might limit the downside.

The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, trades near 106.10 with mild losses but trimmed most of its daily losses, which saw the index below 106.00. 

Overall, the US Dollar maintains a bullish outlook, supported by strong economic data and a hawkish Federal Reserve (Fed) stance. Despite profit-taking and geopolitical uncertainty, the uptrend remains intact. 

This week, thin liquidity and market holidays have resulted in reduced trading activity, but the DXY is expected to continue its upward trajectory due to robust US economic growth.

Daily digest market movers: US Dollar stabilises on Friday ahead of the weekend

• The US Dollar Index is currently trading near 106.00 with slight losses.
• The Greenback has recovered since the reopening of US markets on Black Friday.
• The Euro's rally, which pressured the USD, has subsided, influencing the DXY's behavior.
• The Fed's hawkish stance might continue pushing the index higher.
• This week's Federal Open Market Committee Minutes suggested that the Fed is in no rush to cut rates. 
• Some participants cautioned that disinflation could take longer than expected. Officials discussed a "technical adjustment" to money market operations.
• According to the CME FedWatch Tool, the odds of a December rate cut have risen to around 66%.

DXY technical outlook: Despite profit-taking, outlook remains bullish

Technical indicators for the DXY suggest a period of consolidation with the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators hovering around neutral levels. 

Despite a recent dip below the 20-day Simple Moving Average (SMA), the index has quickly recovered, indicating that the uptrend remains intact. Key support is found at 106.00-106.50, while resistance is at 108.00. The overall bullish momentum suggests that the uptrend is likely to continue in the medium term as the US economy remains robust and the Fed is expected to cool down rate cut bets. Traders should monitor the 106.00 level closely as a break below this level could trigger further downside.