Dollar Index Price Analysis: 96.40 looks like a sticky support zone but it could still give way
|- The dollar index is trading over half a percent lower as the greenback struggles on Wednesday.
- The price is close to a decent support level at the moment and it will take some momentum to push through it.
Dollar Index 4-hour chart
The dollar has struggled across the board on Wednesday and being around 60% weighted to EUR/USD the index is trading lower. The US still continues to struggle to get to grips with the COVID-19 pandemic and the numbers are still rising.
The chart below shows the extent of the fall but the price is stalling at 96.38 and old support zone from 23rd June. If the level does manage to break, the lows on the chart could be the next target. The major support low is holding at 95.71 and is marked by the green horizontal line. Since the price broke the trendline it has been looking pretty bearish and now a couple of lower highs and lower lows have been made the bulls will need some fresh momentum to turn the tide.
The indicators are both looking bearish too. The MACD histogram is red and the signal lines are also under the mid-zone. The Relative Strength Index is also heading to the oversold zone and is in very negative shape at the moment.
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Additional levels
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