- DXY picks up bids following its bounce off two-week-old support line, 21-day SMA.
- 12-week-old resistance line, 50-day SMA guard immediate upside.
- RSI conditions suggest continuation of sideways moves.
- Fed expected to unveil dovish halt during the first FOMC of 2021.
US dollar index (DXY) extends recovery moves while picking up the bids to 90.22 during early Wednesday. The greenback gauge stepped back from a downward sloping trend line from November 02 the previous day. Though, 21-day SMA and a short-term ascending support line restricted further declines.
Although the latest bounce off key support confluence, coupled with the normal RSI line, favor the extension of the corrective pullback, the key resistance line and 50-day SMA challenge the DXY bulls.
As a result, the quote’s current upside momentum eyeing the stated resistance line, at 90.54 now, may fade if fail to cross the 50-day SMA level of 90.65.
On the contrary, the fresh downside will have to break below the 90.13 support confluence and 90.00 round-figure to recall the US dollar bears.
While RSI seems to be failing to provide any clear direction, DXY moves are likely to take clues from today’s US Federal Open Market Committee (FOMC) meeting. Should the Fed announce a dovish halt, as expected, the quote is likely to break the key support while an upbeat statement from the US central bank, if any, needs validation from stimulus and vaccine headlines to please the bulls.
DXY daily chart
Additional important levels
|Today last price||90.23|
|Today Daily Change||0.04|
|Today Daily Change %||0.04%|
|Today daily open||90.19|
|Previous Daily High||90.61|
|Previous Daily Low||90.12|
|Previous Weekly High||90.95|
|Previous Weekly Low||90.05|
|Previous Monthly High||92.02|
|Previous Monthly Low||89.52|
|Daily Fibonacci 38.2%||90.3|
|Daily Fibonacci 61.8%||90.42|
|Daily Pivot Point S1||90|
|Daily Pivot Point S2||89.81|
|Daily Pivot Point S3||89.5|
|Daily Pivot Point R1||90.49|
|Daily Pivot Point R2||90.8|
|Daily Pivot Point R3||90.99|
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.