US Dollar Index Price Analysis: DXY defends 94.00, rebounds from weekly support line
- DXY picks up bids to snap two-day pullback from yearly top.
- Momentum line fails to back recovery moves, 50-SMA, latest August tops add to the downside filters.
US Dollar Index (DXY) takes the bids to refresh intraday high to 94.01 during early Monday. In doing so, the greenback gauge bounces off a short-term support line to consolidate the latest pullback from the yearly top.
However, the recovery moves lack Momentum and hence remain doubtful unless crossing the 94.20 immediate hurdle.
Should the quote remains positive beyond 94.20, the yearly peak near 94.50 and the September 2020 high of 94.74 will be in focus before the 95.00 threshold.
Meanwhile, a downside break of the immediate support line near 94.00 won’t be a pure welcome for the DXY sellers as a convergence of late August tops and 50-SMA, close to 93.70-65, could challenge the bears.
In a case where the US Dollar Index sellers dominate past 93.65, a three-week-old horizontal region near 92.90 will be crucial to watch.
To sum up, DXY remains bullish but intermediate pullback can’t be ruled out.
DXY: Four-hour chart
Trend: Further recovery expected
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.
