Dollar Index eyes key support after Friday's bearish reversal

The dollar index holds support at 91.00 after Friday's rejection at 91.60.
The greenback's corrective bounce looks to have ended, but losses could be limited.

Omkar Godbole FXStreet Contributor

The dollar index, which tracks the greenback's value against majors, is sidelined near 91.05 at press time.

The greenback's corrective bounce from the Jan. 6 low of 89.21 looks to have ended, Friday's bearish outside day candle indicates. The index fell by 0.5%, as the US Nonfarm Payrolls posted a partly gain of 49K jobs in January, pointing to a slower economic recovery.

"The disappointing US jobs data may mark the end of the first phase of the dollar's recovery. A bearish key reversal was posted when it reversed lower after making a new high (~91.60) for the move and closing below the previous session's low (~91.08)," Marc Chandler, chief market strategist at Bannockburn Global Forex and author of the book "Making Sense of the Dollar," noted in his blog.

The renewed risk-on action in the stock markets also favors downside in the anti-risk US dollar.

However, growth differential may limit the downside. While the US economic recovery looks to have slowed, the Eurozone economy is contracting due to coronavirus restrictions.

Technical levels

Dollar Index Spot

Overview
Today last price	91.06
Today Daily Change	0.07
Today Daily Change %	0.08
Today daily open	90.99

Trends
Daily SMA20	90.6
Daily SMA50	90.47
Daily SMA100	91.84
Daily SMA200	93.83

Levels
Previous Daily High	91.6
Previous Daily Low	90.99
Previous Weekly High	91.6
Previous Weekly Low	90.5
Previous Monthly High	90.95
Previous Monthly Low	89.21
Daily Fibonacci 38.2%	91.22
Daily Fibonacci 61.8%	91.37
Daily Pivot Point S1	90.79
Daily Pivot Point S2	90.58
Daily Pivot Point S3	90.18
Daily Pivot Point R1	91.4
Daily Pivot Point R2	91.8
Daily Pivot Point R3	92.01

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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