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

Additional important levels

Overview
Today last price 103.19
Today Daily Change -0.03
Today Daily Change % -0.03%
Today daily open 103.22
 
Trends
Daily SMA20 104.51
Daily SMA50 103.45
Daily SMA100 104.31
Daily SMA200 106.82
 
Levels
Previous Daily High 103.52
Previous Daily Low 103
Previous Weekly High 105.11
Previous Weekly Low 103.44
Previous Monthly High 105.36
Previous Monthly Low 100.81
Daily Fibonacci 38.2% 103.2
Daily Fibonacci 61.8% 103.32
Daily Pivot Point S1 102.98
Daily Pivot Point S2 102.73
Daily Pivot Point S3 102.46
Daily Pivot Point R1 103.49
Daily Pivot Point R2 103.76
Daily Pivot Point R3 104.01

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD struggles to recover above 1.0900 as markets remain cautious

EUR/USD struggles to recover above 1.0900 as markets remain cautious

EUR/USD stays on the back foot and trades below 1.0900 following Thursday's sharp decline. Dovish comments from European Central Bank officials and the risk-averse market atmosphere make it difficult for the pair to stage a rebound on Friday.

EUR/USD News

GBP/USD falls toward 1.2900, looks to post weekly losses

GBP/USD falls toward 1.2900, looks to post weekly losses

GBP/USD continues to push lower toward 1.2900 in the American session on Friday. Disappointing Retail Sales data from the UK, combined with the US Dollar (USD) recovery amid souring mood, causes the pair to stay under bearish pressure ahead of the weekend.

GBP/USD News

Gold extends daily slide, trades near $2,400

Gold extends daily slide, trades near $2,400

Gold's correction from the record-high set earlier in the week deepens on Friday. With the US Dollar (USD) benefiting from safe-haven flows and the 10-year US yield holding steady above 4.2%, XAU/USD tests $2,400 and looks to post small weekly losses

Gold News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

Read more

Week ahead – Flash PMIs, US GDP and BoC decision on tap

Week ahead – Flash PMIs, US GDP and BoC decision on tap

US data awaited amid overly dovish Fed rate cut bets. July PMIs to reveal how economies entered H2. BoC decides on monetary policy, may cut rates again.

Read more

Forex MAJORS

Cryptocurrencies

Signatures