US Dollar Index Price Analysis: DXY bears set to test 50-day SMA ar 92.55
- DXY edges lower on Monday following the previous session’s downside move.
- More downside if price decisively breaks 92.60.
- Momentum oscillator holds onto the overbought zone with bearish crossover.
US Dollar Index loses momentum in the Asian session on Monday. As of writing, DXY is trading at 92.62, up 0.06% for the day.
DXY daily chart
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On the daily chart, after making a high of 93.72 on August 20, DXY slides below 93.00 on August 23. The ascending trendline from the lows of 89.95 acts as defensive for the bulls.
A break below 50-day Simple Moving Average (SMA) at 92.55, would bring more selling opportunities toward the 92.35 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator holds in the overbought zone. Any downtick in the MACD would intensify the selling toward the low of August 5 at 92.05.
Bears would further be encouraged to test the 91.80 horizontal support level.
Alternatively, If it reverses the direction, then the first upside target is located at the 93.06 horizontal resistance level, followed by the 93.25 horizontal resistance zone.
Next, the market participant would like to aim for the high of 93.48 made on August 23.
DXY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
