Dollar Index Price Analysis: The DXY continues to resist moves lower
- The dollar index trades 0.12% lower on Friday.
- The risk sentiment improved during the US session but the dollar remains mixed.
Dollar index 4-hour chart
The dollar index is in a clear downtrend looking at the chart below. On Friday, the price has been very stubborn and now it does look like a base formation is building. The orange support level at 96.34 was tested again on Thursday but the price bounced back. Once again the price moved lower in today's (Friday) session but the market caught a bid even before it could reach the zone.
The dollar basket in the medium term is still making lower highs and lower lows. A break of the wave low of 96.23 would be the confirmation that this trend is set to continue lower. If this is the case then the low of on the chart would be under threat.
The indicators are looking bearish but the MACD histogram is green. The main signal lines are still under the zero area indicating that the downtrend is not over just yet. The Relative Strength Index is still under the 50 line and there is space for a move into the oversold area. If the support levels do give way then the indicator could move into oversold zones once again.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
