US Dollar Index Price Analysis: DXY stays on the bull’s radar despite inaction around 113.00
- US Dollar Index retreats from one-week high, probes four-day uptrend.
- Impending bull cross on the MACD, firmer RSI keeps DXY firmer past 10-DMA.
- Two-month-old support line adds to the downside filters.
US Dollar Index (DXY) buyers take a breather around 113.00, extending a pullback from a one-week high during early Tuesday’s sluggish Asian session. Even so, the sustained trading beyond the short-term moving average and the price-positive signals from the oscillators keep the buyers hopeful.
That said, Friday’s upside break of the 10-DMA, around 112.10 by the press time, joins the firmer RSI (14) and the looming bull cross on the MACD to suggest the quote’s additional north run.
It should be noted that the 23.6% Fibonacci retracement level of the DXY’s August-September up-move, around 112.40, acts as immediate support for the greenback’s gauge versus the six major currencies.
Even if the US Dollar Index breaks the 112.40 and 112.10 supports, an upward-sloping support line from early August, around 110.75 at the latest, could challenge the bears.
Alternatively, the 114.00 threshold will precede the recent multi-month high near 114.80 while luring the DXY bulls.
Following that, the May 2002 high near 115.35 and the 61.8% Fibonacci Expansion (FE) of August-October moves, near 116.40, will be in focus.
DXY: Daily chart
Trend: Further upside 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.
