- DXY struggles to extend Monday’s rebound, stays below two-week-old channel.
- Bearish MACD signals direct sellers towards 100-SMA but monthly support line will challenge the following downside.
- Weekly falling trend line offers immediate resistance, 97.00 is the key.
US Dollar Index (DXY) remains pressured towards 96.00, around 96.17 during Tuesday’s Asian session. The greenback gauge consolidated Friday’s heavy losses the previous day but failed to negate the downside break of a two-week-old ascending trend channel.
In addition to the confirmation of the bearish chart pattern, downbeat MACD signals and sustained trading below the weekly resistance line also weigh on the US Dollar Index.
That said, the quote drops towards the 100-SMA level of 95.57 by the press time but any further weakness will be challenged by an ascending support line from late October, around 95.00.
Should DXY bears keep reins past 95.00, the monthly low near 93.80 will be on their radars.
Alternatively, the stated weekly resistance line and the channel’s support, around 96.50-55, guards the quote’s immediate upside.
Following that, a run-up towards the 97.00 key hurdle can’t be ruled out. However, the stated channel’s resistance line near 97.40 could test the DXY bulls afterward.
DXY: Four-hour chart
Trend: Further weakness expected
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
Editors’ Picks
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.