News

US Dollar Index technical analysis: Worst weekly decline since June sends DXY down to the 200-day SMA

  • The US Dollar Index (DXY) is under heavy bearish pressure as the market prints its worst weekly decline since mid-June 2019. 
  • This Friday, the negative sentiment on the Greenback sent the Index down to the critical 200-day simple moving average. 
 

DXY weekly chart

 
The US Dollar Index (DXY) had its worst weekly decline since June 2019. However, the Index is still trading above its main SMAs (simple moving averages), suggesting that the bull trend is still in place for now. 

DXY daily chart

 
The drop in the Greenback this week saw the Index breaking below both the 50 and 100 SMAs. Now it is the 200 SMA which is being put to the test. Next week, it will be interesting to see how the market reacts around this important level. 

DXY four-hour chart

 
DXY is under heavy bearish pressure below its main SMAs as the market broke below the 97.60 support level. Given the strong bearish momentum, it can be expected that the market can drop to the 97.20 level. Further down lies the 96.70 support. 
 
 

Additional key levels

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.