US Dollar Index recedes from stiff resistance near 96.25 amid risk reset


  • DXY takes a breather after retesting 16-month tops on Friday.
  • Improving mood on the Asian indices caps the upside in the dollar.
  • RSI has turned lower, backing the pullback in the US dollar index.

US Dollar Index (DXY) is paring gains, as the sellers return on Monday after a positive start to a new week.

The improving market mood could be linked to the latest drop in the spot, as investors look past resurfacing worries over fresh covid curbs in Europe after Austria announced a nationwide lockdown last Friday.

Expectations of more stimulus coming in from China lifted the overall market mood, despite the People’s Bank of China (PBOC) leaving the loan prime rate (LPR) unchanged at 3.85% yet again.

Despite the retreat from higher levels, the downside remains cushioned, as the US Treasury yields snap its three-day downtrend and rebounded 1% on the 10-year time frame.

Technically, the index needs to find a strong foothold above the horizontal trendline resistance at 96.25 to unleash the additional upside momentum.

The 14-day Relative Strength Index (RSI) has turned slightly lower while near 65.50, justifying the recent pullback in the price.    

If the correction picks up pace, then a further drop towards the bullish 21-Daily Moving Average (DMA) at 95.85 cannot be ruled out.

DXY: Daily chart

DXY: Additional levels 

Dollar Index Spot

Overview
Today last price 96.10
Today Daily Change 0.06
Today Daily Change % 0.06
Today daily open 96.04
 
Trends
Daily SMA20 94.57
Daily SMA50 94.03
Daily SMA100 93.33
Daily SMA200 92.27
 
Levels
Previous Daily High 96.24
Previous Daily Low 95.55
Previous Weekly High 96.25
Previous Weekly Low 94.97
Previous Monthly High 94.56
Previous Monthly Low 93.28
Daily Fibonacci 38.2% 95.98
Daily Fibonacci 61.8% 95.81
Daily Pivot Point S1 95.65
Daily Pivot Point S2 95.25
Daily Pivot Point S3 94.96
Daily Pivot Point R1 96.34
Daily Pivot Point R2 96.63
Daily Pivot Point R3 97.03

 

 

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