US Dollar Index Price Analysis: DXY drops back from 10-DMA as MACD flirts with bears
- DXY consolidates the previous day’s gains, refreshes intraday low of late.
- Bearish MACD, failures to cross short-term moving average keep sellers hopeful.
- Six-week-old falling trend line adds to the upside barriers.
US dollar index (DXY) takes offers around 90.68, down 0.11% intraday, during early Thursday. While the Asian traders seem to lick the previous day’s US Consumer Price Index (CPI)-led wounds, the greenback gauge’s inability to cross 10-day SMA (DMA) favor short-term sellers.
Not only the failures to cross 10-DMA but bearish MACD also suggest pullback of the US dollar.
Hence, a 10-pip area comprising levels marked since late February, around 90.45-35, regains the market’s attention ahead of the monthly bottom near the 90.00 psychological magnet.
In a case where DXY bears keep reins past 90.00, February’s bottom close to 89.70 should be targeted for short positions.
On the flip side, a daily closing beyond the 10-DMA level of 90.78 is a guaranteed call to the greenback buyers as a downward sloping trend line from March 31, near 91.00, tests the following upside moves.
DXY daily chart
Trend: Pullback 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.
