DXY Technical Analysis: Door open for further downside? DXY breaks below the short-term support line

  • The better tone in the risk-on trade plus disappointing figures from the US docket leaves the buck vulnerable today and brought in extra downside pressure on the US Dollar Index (DXY).
  • The index has broken below the critical support line and extended the drop further south of the key support at 95.00 the figure.
  • The down move carries the potential to extend to June’s low at 93.71 unless the tariffs-trade comes back to the fore along with the perception of two more rate hikes by the Fed in the next months.

DXY daily chart

 

 

 

 

Daily high: 94.97

Daily low: 94.43

Support Levels

S1: 94.63

S2: 94.40

S3: 94.08

Resistance Levels

R1: 95.18

R2: 95.50

R3: 95.73

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