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.

Dhwani Mehta FXStreet

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

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.