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.
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
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.
