US Dollar Index Price Analysis: DXY bulls battle seven-week-old resistance line

DXY extends Friday’s run-up amid US Senate passes one-day stopgap funding with nearly final covid stimulus.
10-day SMA adds strength to the immediate upside hurdle.
Bears can re-enter on the downside break below 90.00.

Anil Panchal FXStreet

US Dollar Index (DXY) takes the bids near 90.45, up 0.50% intraday, during early Monday. The greenback gauge bounced off the lowest since April 2018 last Friday amid hopes of the US coronavirus (COVID-19) aid package as the current budget funding reached near expiry.

During the weekend, policymakers at Capitol Hill finalized the details of the much-awaited covid stimulus but couldn’t announce it formally as Sunday ends. However, the Congress members managed to avert the government shutdown while passing a one-day stopgap funding bill.

Read: S&P 500 Futures wobble around 3,700 as US stimulus news combat Brexit, virus woes

In a reaction, the US dollar extends Friday’s recovery moves while battling a downward sloping trend line from November 04 as well as 10-day SMA, around 90.49/53.

While upbeat fundamentals are likely to support the greenback buyers to cross the 90.53 immediate hurdle, a 21-day SMA near 91.07 will challenge the quote afterward.

Alternatively, the 90.00 threshold restricts the sellers’ entries ahead of the recent multi-month low of 89.72.

In a case where the DXY drops below 89.72, April 2018 low near 89.22 will lure the bears.

DXY daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	90.46
Today Daily Change	0.46
Today Daily Change %	0.51%
Today daily open	90

Trends
Daily SMA20	91.1
Daily SMA50	92.28
Daily SMA100	92.78
Daily SMA200	95.53

Levels
Previous Daily High	90.13
Previous Daily Low	89.77
Previous Weekly High	90.82
Previous Weekly Low	89.73
Previous Monthly High	94.31
Previous Monthly Low	91.5
Daily Fibonacci 38.2%	89.99
Daily Fibonacci 61.8%	89.91
Daily Pivot Point S1	89.81
Daily Pivot Point S2	89.61
Daily Pivot Point S3	89.45
Daily Pivot Point R1	90.17
Daily Pivot Point R2	90.33
Daily Pivot Point R3	90.52

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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