US Dollar Index Price Analysis: DXY sellers need validation from 96.65

US Dollar Index bounces off intraday low, grinds higher around 16-month top.
20-SMA, 13-day-old support line restricts immediate downside.
Bearish MACD signals, Doji at multi-day top keep sellers hopeful.

Anil Panchal FXStreet

US Dollar Index (DXY) pares intraday losses around the highest levels since July 2020, bouncing off daily lows to 96.72 by the press time of early Friday.

The greenback’s corrective pullback from intraday low seems to have limited life considering the bearish MACD signals and the DXY’s ability to rise past 96.94, as portrayed by the Doji candle at the 16-month top.

Given the trend-reversal suggesting candle and MACD signals, the US Dollar Index bears remain hopeful. However, a clear downside break of the 20-SMA and an ascending support line from November 09, near 96.65, becomes necessary for the seller’s entry.

Following that, November 17 swing high near 96.25 can offer an intermediate halt during the fall targeting the 96.00 round figure.

In a case where greenback sellers dominate past 96.00, November 11 low of 95.51 and 61.8% Fibonacci retracement of the monthly run-up, near 95.00 will be in focus.

Alternatively, recovery moves may initially aim for the 97.00 threshold before directing the DXY bulls towards June 2020 high close to 97.80.

DXY: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	96.72
Today Daily Change	-0.06
Today Daily Change %	-0.06%
Today daily open	96.78

Trends
Daily SMA20	95.16
Daily SMA50	94.35
Daily SMA100	93.5
Daily SMA200	92.39

Levels
Previous Daily High	96.86
Previous Daily Low	96.65
Previous Weekly High	96.25
Previous Weekly Low	94.97
Previous Monthly High	94.56
Previous Monthly Low	93.28
Daily Fibonacci 38.2%	96.73
Daily Fibonacci 61.8%	96.78
Daily Pivot Point S1	96.67
Daily Pivot Point S2	96.56
Daily Pivot Point S3	96.46
Daily Pivot Point R1	96.87
Daily Pivot Point R2	96.97
Daily Pivot Point R3	97.08

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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