US Dollar Index Price Analysis: DXY bears pause inside head-and-shoulders on 4H
- DXY fades recovery moves while printing first run-up in three days.
- Bearish MACD, sustained treading below 200-bar SMA, favor formation suggesting further downtrend.
- Last week’s top add to the upside filters beyond SMA hurdle.
US dollar index (DXY) eases from an intraday high of 90.38 to 90.33 while trimming the early-Asian gains, the first in three days, ahead of Monday’s European session.
In doing so, the quote stays inside a bearish chart pattern on the four-hour (4H) formation as the MACD flashes signals for further weakness.
However, sellers will wait for confirmatory moves below 90.10 to retake controls and tease bears with the 150-pip theoretical target. During the fall, the yearly bottom surrounding 89.20 will offer an intermediate halt.
Meanwhile, corrective pullback needs to cross the 200-bar SMA level of 90.51 to target the one-week top near 91.05.
Should the USD buyers stay bullish past-91.05, the monthly peak near 91.60 will return to the chart ahead of directing the moves to confront September 2020 low near 91.75.
DXY four-hour chart
Trend: Bearish
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.
