US Dollar Index Technical Analysis: DXY drops sharply as Fed’s Powell delivers dovish comments

Flavio Tosti Independent Analyst

DXY daily chart

The US Dollar Index (DXY) is trading in a bull trend above its main simple moving averages.
Today’s down move was triggered by dovish comments from Fed’s Powell.
Bears are set to close below the 97.00 psychological level as technical indicators are decelerating.

DXY 4-hour chart

DXY plunged down to find some support at the 50 SMA.
97.00 and 97.25 become the new resistances.
Technical indicators have turned bearish suggesting potential losses ahead.

DXY 30-minute chart

After the fresh sell-off, there can be a pullback up to 97.00 as the market might want to test the 200 SMA and the round number.
If the bears keep the momentum going the next main target to the downside is likely located near the 96.30 level.

Additional key levels

Dollar Index Spot

Overview:
    Today Last Price: 96.86
    Today Daily change: -50 pips
    Today Daily change %: -0.514%
    Today Daily Open: 97.36
Trends:
    Previous Daily SMA20: 96.76
    Previous Daily SMA50: 95.98
    Previous Daily SMA100: 95.55
    Previous Daily SMA200: 93.79
Levels:
    Previous Daily High: 97.5
    Previous Daily Low: 96.97
    Previous Weekly High: 96.98
    Previous Weekly Low: 96.04
    Previous Monthly High: 97.2
    Previous Monthly Low: 94.79
    Previous Daily Fibonacci 38.2%: 97.3
    Previous Daily Fibonacci 61.8%: 97.17
    Previous Daily Pivot Point S1: 97.05
    Previous Daily Pivot Point S2: 96.75
    Previous Daily Pivot Point S3: 96.52
    Previous Daily Pivot Point R1: 97.58
    Previous Daily Pivot Point R2: 97.81
    Previous Daily Pivot Point R3: 98.11

Author

Flavio Tosti

Independent Analyst

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