US Dollar Index Price Index: DXY bears cheer Trump’s signing of stimulus
- DXY refreshes intraday low, drops back below 10-day SMA.
- The previous resistance line from November 04 lures the greenback bears.
- 21-day SMA, monthly resistance line add to the upside barrier.
US dollar index (DXY) drops to 90.19, down 0.15% intraday, during early Monday. The greenback gauge recently declined after US President Donald Trump signed the coronavirus (COVID-19) relief bill. The White House leader earlier refrained to sign the Congress-backed proposal while demanding the $2,000 as a paycheck amount versus the $600 suggested.
Read: Breaking: President Trump signs coronavirus relief bill
With the latest declines, the greenback gauge revisits the sub-10-day SMA area, which in turn directs the DXY bears towards an eight-week-old previous resistance, currently around 89.97.
Though, any further weakness will make the risk barometer vulnerable to revisit the lowest since April 2018, marked earlier in the month, around 89.72.
Alternatively, 21-day SMA and a falling trend line from December 02, respectively around 90.63 and 90.83, guard immediate upside of the US dollar index.
In a case where the DXY bulls manage to cross 90.83, 91.50 and the monthly top near 92.02 should return to the charts.
DXY daily 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.
