US Dollar Index Price Analysis: Corrective pullback battles with 200-day EMA
|- DXY bounces off monthly low to snap three-day downtrend.
- Convergence of 100-day EMA, 10-week-old support line offers strong support.
- Two-week-old descending trend line adds to the upside filters.
US Dollar Index (DXY) consolidates recent losses around 92.15, up 0.05% intraday during early Monday.
In doing so, the greenback gauge prints a daily positive for the first time in four days while keeping the bounce off monthly low flashed the previous day.
Given the bearish MACD signals and the quote’s sustained stay below a short-term falling trend line, US Dollar Index is likely to remain pressured.
However, a clear downside break of 92.05, comprising the 100-day EMA and an ascending support line from June 23, becomes necessary for the bears to extend the governance.
It’s worth noting that the 92.00 round figure will check the DXY bears past 92.05 before directing them to the lows marked in July and late June, respectively around 91.78 and 91.50.
On the contrary, the US Dollar Index run-up beyond 200-day EMA, near 92.17, becomes necessary for the extension of the latest corrective pullback.
However, a short-term resistance line near 92.55 and the double tops marked during July and early August, near 93.20, will be key hurdles to watch afterward.
DXY: Daily chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.