- DXY fades bounce off monthly support line below 21-DMA.
- Downbeat Momentum, sustained break of two-month-old previous support line favor sellers.
- Two-week-old descending trend line adds to the upside filters.
US Dollar Index (DXY) remains on the back foot around 96.10, down 0.06% intraday, during early Monday.
The greenback gauge bounced off a one-week low the previous day while taking a U-turn from an upward sloping support line from November 30. However, the rebound couldn’t cross the immediate upside hurdle, namely the 21-DMA, which in turn joins the downbeat Momentum line to keep bears hopeful.
Adding to the bearish bias is the DXY’s sustained trading below the support-turned-resistance line from late October, as well as a descending trend line from December 15.
That said, a clear downside break of the immediate support line, near 96.00, becomes necessary for the US Dollar Index bears before eyeing the 38.2% Fibonacci retracement of October-November upside, near 95.53.
Alternatively, an upside clearance of the 21-DMA level of 96.21 will trigger short-term advances towards the fortnight-long resistance line near 96.40.
However, the previous support line and the last month’s top, respectively around 96.50 and the 97.00 threshold, will be tough nuts to crack for the DXY bulls.
DXY: Daily chart
Trend: Further weakness expected
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