US Dollar Index Price Analysis: DXY bears appear well-set to visit 102.65-55 zone despite pre-Fed inaction
- US Dollar Index grinds near five-week low, probes bears after four-day downtrend.
- Bearish MACD signals, sustained trading below 50-DMA keep DXY sellers hopeful.
- Nine-week-old horizontal support zone, previous resistance line from late November challenge heavy fall.
- Fortnight long resistance line, 200-DMA add to the upside filters.
US Dollar Index (DXY) struggles to keep bears on the board pre-Fed anxiety dominates trading momentum during early Wednesday. Even so, the greenback’s gauge versus the six major currencies remains depressed around the five-week low marked the previous day, close to 103.20 at the latest.
The DXY’s sustained break of the 50-DMA and bearish MACD signals also rule out chances of the quote’s recovery despite the Fed-linked caution.
Also read: US Dollar Index: DXY traces retreat in yields to highlight five-week low near 103.00 on Fed Day
As a result, the US Dollar Index appears en route to the horizontal support zone comprising multiple levels marked since early January, between 102.65 and 102.55.
Even if the US dollar’s gauge breaks the 102.55 support, a four-month-old previous resistance line, now support around 101.80, could challenge the sellers before directing them to the Year-To-Date (YTD) low marked in February around 100.80.
Alternatively, a daily closing beyond the 50-DMA level of 103.45 isn’t an open ticket to the US Dollar Index bulls as a downward-sloping resistance line from March 08, at 104.25 by the press time, could challenge the quote’s further upside moves.
Following that, the monthly high and the 200-DMA hurdles, respectively around 105.90 and 106.65 will be in focus.
US Dollar Index: Daily chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
