US Dollar Index Price Analysis: DXY renews monthly low but 101.30 can test bears
- DXY extends the previous day’s losses towards testing the lowest levels in five weeks.
- Bearish MACD signals, absence of oversold RSI favor sellers.
- 50-DMA, 50% Fibonacci retracement level challenge further downside.
- Bulls remain hopeful unless the quote crosses 103.30 hurdle.
US Dollar Index (DXY) stands a slippery ground as it refreshes its monthly low around 101.45 during Friday’s Asian session.
In doing so, the greenback gauge extends the previous day’s pullback amid bearish MACD signals. Also adding strength to the bearish bias is the descending RSI (14) line, not oversold.
However, a convergence of the 50-DMA and 50% Fibonacci retracement of late March to early May upside, around 101.30, appears a tough nut to crack for the bears.
Following that, the 101.00 threshold, also comprising mid-April tops, may entertain DXY bears ahead of directing them to the late March high near 99.35.
Meanwhile, recovery moves remain elusive below a downward sloping trend line from May 16, close to 102.40 by the press time.
Also challenging the US Dollar Index upside is the previous support line from late March, around 103.30, a break of which can recall the 104.00 round figure in the chart.
DXY: Daily chart
Trend: Limited downside 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.
