- DXY stays on the back foot around weekly lows.
- Sustained trading below 50-day SMA, bearish chart formation keeps greenback sellers hopeful.
- 21-day SMA probes short-term downside ahead of the monthly low.
US dollar index (DXY) fades the bounce off 90.40 while taking rounds to 90.50 during Wednesday’s Asian session. The greenback gauge versus major currencies marked the heaviest losses in over a week the previous day while extending pullback from the monthly top, portrayed on Monday. In doing so, DXY teases confirmation of a short-term rising wedge, bearish chart play.
Given the greenback gauge’s inability to cross 50-day SMA, coupled with expected risk-on mood, DXY is likely to confirm the bearish pattern.
Although USD bears an eye for the fresh multi-month low following the DXY declines below 90.45, 21-day SMA near 90.15 and the 90.00 threshold can offer intermediate halts during the fall.
Meanwhile, an upside clearance of 50-day SMA, at 90.87 now, needs to defy the bearish chart play by crossing the pattern’s resistance line around 91.00.
Following that, DXY bulls will eye for December 07 top near 91.25 and September 2020 low near 91.75 ahead of challenging the 92.00 round-figure.
DXY daily chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
EUR/USD: ECB and US Treasury yields to make it or break it
The EUR/USD pair fell to a fresh 2021 low at 1.1892 this week, ending with a handful of pips above this level. The dollar soared across the board following comments from the head of US Federal Reserve Jerome Powell.
GBP/USD: Dollar bulls taking over
The British Pound was among the best performers against the greenback, surging above the 1.4000 level for the first time this week. Soaring US Treasury yields after Powell’s speech sent the dollar skyrocketing. GBP/USD struggling around 1.3900 and at risk of falling further.
Gold still eyes June 2020 lows at $1670 after weekly closing below $1700
Weekly closing below $1700 keeps the XAU/USD sellers hopeful. A bounce towards 50-SMA on 4H cannot be ruled out in the near-term. RSI stays bearish while gold holds within a potential falling wedge.
Ethereum price primed for a swift recovery as the network prepares for a major update in July
Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.
US Dollar Index pushes higher to 92.20 on stellar Payrolls
The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).