US Dollar Index Price Analysis: DXY bears attack multi-month low below 90.00

DXY bounces off intraday low of 89.73 in a corrective pullback amid two-day declines.
Previous resistance line from early November offers immediate support.
April 2018 low stays on the bears' radar unless breaking 21-day SMA.

Anil Panchal FXStreet

US dollar index (DXY) drops the fresh low in two weeks while extending the previous day’s downtrend to 89.73, currently down 0.24% around 89.78, during early Wednesday.

In doing so, the greenback gauge bounces off the previous resistance line, now support, stretched from November 04 amid the bullish MACD. However, the indicator’s inability to cross 21-day SMA suggests the momentum weakness.

Ahead of the stated support line, previous resistance, around 89.70, the monthly low, also the lowest since April 2018, of 89.73, will also challenge the US dollar bears.

Hence, further selling of the DXY needs a clear break of 89.70 before eyeing the 32-month bottom surrounding 89.22 and the 89.00 round-figure.

Meanwhile, the 90.00 psychological magnet guards the greenback indicator’s immediate upside ahead of the confluence comprising December 04 low and 21-day SMA near 90.47/48.

In a case where the USD buyers manage to cross the 90.48 hurdle, the monthly high of 92.00 will gain the market’s attention.

DXY daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	89.77
Today Daily Change	-0.23
Today Daily Change %	-0.26%
Today daily open	90

Trends
Daily SMA20	90.52
Daily SMA50	91.84
Daily SMA100	92.57
Daily SMA200	95.15

Levels
Previous Daily High	90.31
Previous Daily Low	89.85
Previous Weekly High	91.02
Previous Weekly Low	90.02
Previous Monthly High	94.31
Previous Monthly Low	91.5
Daily Fibonacci 38.2%	90.03
Daily Fibonacci 61.8%	90.14
Daily Pivot Point S1	89.8
Daily Pivot Point S2	89.6
Daily Pivot Point S3	89.34
Daily Pivot Point R1	90.26
Daily Pivot Point R2	90.51
Daily Pivot Point R3	90.72

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.

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