- DXY snaps three-day downtrend near weekly low, picks up bids of late.
- 50% retracement adds strength to the immediate support.
- Momentum line also favors corrective pullback towards thee-week-old resistance area.
US Dollar Index (DXY) consolidates recent losses around 94.00 during early Wednesday. In doing so, the greenback gauge licks its wounds near the weekly low following a three-day fall.
The rebound takes place from a convergence of the 200-SMA and 50% retracement of October 28 to November 05 upside, around 93.95. Also favoring the corrective pullback is the Momentum line that recently bounced off the monthly bottom.
That being said, the US Dollar Index recovery moves look to a horizontal area comprising multiple levels marked since October 18 near 94.20. However, 23.6% Fibo. and October’s peak, respectively near 94.30 and 94.55, will challenge the bulls afterward.
Should the quote rises past 94.55, the multi-month high marked last week around 94.65 and the 95.00 threshold will be in focus.
Meanwhile, further weakness past 93.95 support confluence will direct DXY bears to the 61.8% Fibonacci retracement level of 93.80.
In a case where the greenback remains weak past 93.80, bottoms marked during late October near 93.50 and the last month’s low of 93.27 should gain the market’s attention.
DXY: Four-hour chart
Trend: Further recovery expected
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