US Dollar Index Price Analysis: DXY bounces off 10-week low towards previous hurdle
|- DXY consolidates the heaviest drop in six months.
- Sustained break of the key support line, now resistance, joins bearish MACD to favor sellers.
- April low adds to the immediate upside hurdle, February’s bottom stays on seller’s radar.
Having recently dropped to the fresh low since February 26, the US dollar index (DXY) picks up bids to 90.23 amid Monday’s Asian session trading. In doing so, the greenback gauge snaps a three-day downtrend.
However, bearish MACD and Friday’s break of an ascending support line from January 06 keeps DXY sellers hopeful.
While the 90.00 threshold acts as immediate support, February’s low of 89.68 becomes the key for the US dollar sellers as a break of which may not hesitate to challenge the yearly bottom surrounding 89.20.
Alternatively, a clear upside break of the previous support line near 90.35 needs to cross April’s trough of 90.42 before convincing short-term buyers.
Though, the 91.00 threshold, a 21-day SMA level near 91.00 and a downward sloping trend line from March 31 close to 91.20 may challenge the DXY’s further upside.
DXY daily chart
Trend: Bearish
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.