US Dollar Index Price Analysis: DXY stays directed towards seven-week-old hurdle
- DXY remains positive near intraday high amid risk-off mood.
- Bullish MACD, strong RSI favor buyers, monthly support line, 200-bar SMA limits short-term downside.
With the Gamestop-led trading restrictions joining China tensions, the US dollar index (DXY) stays positive, currently up 0.22% at 90.74, during early Friday.
The greenback gauge versus the major currencies failed to decline below 90.40 the previous day and the bounce gained support from bullish MACD and strong RSI, in addition to the risk catalysts, to remain strong above the 90.00 threshold.
The bulls are currently targeting a downward sloping trend line from December 11, at 90.92 now, while any further upside will have to cross the monthly top of 90.98 to reach the 91.00 round-figure.
Alternatively, an ascending trend line from January 06, currently around 90.28, joins a 200-bar SMA level of 90.24 to challenge the bears.
If at all, the DXY drops below 90.24, the 90.00 threshold and the monthly low near 89.20 should return to the charts.
DXY four-hour chart
Trend: Bullish
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.
