Dollar Index Price Analysis: Tuesday's marubozu shows bull bias
|- The dollar index carved out a bullish marubozu candle on Tuesday.
- The greenback eyes trendline hurdle as the bullish sentiment looks quite strong.
The dollar index, which gauges the greenback's value against major currencies, rose 0.5% on Tuesday, forming a green marubozu candle.
A marubozu is a one-candlestick pattern with negligible or no wicks and a big body and signals significant strength.
A bullish or above-50 reading on the relative strength index accompanies the marubozu candle. Besides, the MACD histogram is printing higher bars above the zero line, a sign of the strengthening of upward momentum.
As such, the greenback looks set to test resistance at 94.40. That level is the 23.6% Fibonacci retracement of the sell-off from 102.99 to 91.75.
A close under Tuesday's low of 93.00 would invalidate the bullish setup. At press time, the dollar index is seen near 93.50.
Daily chart
Trend: Bullish
Technical levels
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