US Dollar Index Price Analysis: DXY bears are well-set to revisit monthly low
- US Dollar Index pares the biggest daily loss in over a week.
- Clear downside break of a two-week-old ascending support, sustained trading below 200-HMA favor sellers.
- RSI conditions suggest limited downside, highlighting the monthly bottom as strong support.
- Multiple hurdles stand tall to challenge recovery moves.
US Dollar Index (DXY) picks up bids to pare the recent losses around 104.00 as traders prepare for the last daily show of 2022.
That said, the greenback’s gauge versus the six major currencies dropped the most in nearly 10 days the previous day after it broke a two-week-old ascending trend line.
However, the RSI (14) triggered the following corrective bounce which currently jostles with the support-turned-resistance line.
Even if the quote manages to cross the immediate hurdle surrounding 104.00, the 200-HMA resistance near 104.20 could probe the DXY bulls.
It should be observed that multiple levels around 104.60 and the 105.00 round figure might challenge the US Dollar Index upside before directing it to the monthly peak of 106.00.
Alternatively, pullback moves may aim for the latest trough surrounding 103.77 if the buyers fail to cross the previous support line.
Though, the RSI (14) may again play its role in activating the DXY rebound n case the quote fails to recover from 103.77 and poke the monthly low near 103.45.
If at all the US Dollar Index remains bearish past 103.45, the 103.00 round figure and early June’s high near 102.70 could gain the DXY seller’s attention.
US Dollar Index: Hourly chart
Trend: Limited 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.
