US Dollar Index Price Analysis: Rounding top on 4H portrays DXY bears’ dominance
- DXY fails to keep the bounce off April 2018 low.
- Bearish MACD, sustained trading below 50-bar EMA favor sellers.
- Bulls can eye three-week-old horizontal resistance above key EMA resistance.
US dollar index (DXY) prints mild losses, currently down 0.06% around 90.67, during the early Tuesday. The greenback gauge dropped to the fresh low since April 2018 before bouncing off 90.42. However, the corrective pullback faded around 90.84.
Not only the inability to recover but sustained trading below 50-bar SMA, amid bearish MACD, joins the eight-day-old rounding top formation on the four-hour (4H) chart to keep the DXY bears hopeful.
While multiple downside barriers around 90.50/45 can challenge the greenback sellers, the 90.00 threshold is likely attracting the offers before the April 2018 monthly bottom close to 89.22.
On the contrary, the recent high of 90.85 can guard the immediate upside of DXY ahead of the 50-day EMA level of 90.97.
The last Wednesday’s top near 91.20 and 91.50 are likely extra hurdles to the north ahead of a short-term horizontal resistance line near 92.03.
DXY four-hour chart
Trend: Bearish
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.
