US Dollar Index Price Analysis: DXY stays depressed below previous support, Powell Speech in the spotlight
|- DXY fails to keep bounce off six-week low.
- Support-turned-resistance from January 29 guards immediate upside.
- 200-bar SMA adds to the resistance, late 2020 lows can offer intermediate halts ahead of the yearly bottom.
US dollar index (DXY) fails to recover, despite the corrective pullback marked during the early Asian session, as the quote drops back to 89.99, down 0.10% intraday ahead of Tuesday’s European session.
While marking the latest weakness from 90.03, DXY respects the strength of the previous support line from January 29. The losses also take clues from the bearish MACD and downbeat RSI conditions.
However, the latest low near 89.94 and the January 13 bottom surrounding 89.92 can restrict immediate declines of the greenback gauge.
Also acting as the short-term supports could be lows marked during December 17 and 31, respectively around 89.72 and 89.51.
In a case where the USD bears refrain to bounce off 89.51, odds of witnessing a fresh low beneath the yearly bottom close to 89.20 can’t be ruled out.
It should be noted that the greenback’s short-term moves may remain sluggish as markets await bi-annual testimony from Fed Chairman Jerome Powell.
Read: Dollar outlook: How will surging treasury yields affect Powell’s testimony
DXY four-hour 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.