US Dollar Index technical analysis: DXY takes a hit as ECB's QE comes into play


  • The European Central Bank (ECB) sends markets into turmoil as the Bank cuts rates and launch a Quantitative Easing (QE) program. 
  • The US Dollar Index (DXY) erases intraday gains and remains bullish above the 200 DSMA. 
 

DXY daily chart

 
 
DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DSMAs). The US Dollar Index has been on a rollercoaster this Thursday as the European Central Bank's cut rates by 10 basis points and launch a new Quantitative Easing program. The Greenback is somewhat underpinned by rising 10-year US Bond Yields which are trading at one-month's high. 
 
 

DXY four-hour chart

 
DXY had a sharp spike down and is now settling above 98.20 and the rising 200 SMA, suggesting bullish momentum in the medium term. Initially, bulls will need to overcome the 98.42 and 98.55 resistances after which 98.68 and 98.94 can come back into play although at this stage it is unclear if the market can get that far in the medium term.
 
 

DXY 30-minute chart

 
 
DXY erased the earlier intraday gains and is now under pressure below its main SMAs. The 98.20 is for now supporting the market. The 98.08 support level might be the last bastion of defence before a more meaningful correction down in the US Dollar. 
 

Additional key levels

Dollar Index Spot

Overview
Today last price 98.37
Today Daily Change -0.26
Today Daily Change % -0.26
Today daily open 98.63
 
Trends
Daily SMA20 98.36
Daily SMA50 97.87
Daily SMA100 97.6
Daily SMA200 97.12
Levels
Previous Daily High 98.74
Previous Daily Low 98.31
Previous Weekly High 99.38
Previous Weekly Low 98.08
Previous Monthly High 99.02
Previous Monthly Low 97.21
Daily Fibonacci 38.2% 98.58
Daily Fibonacci 61.8% 98.47
Daily Pivot Point S1 98.38
Daily Pivot Point S2 98.13
Daily Pivot Point S3 97.95
Daily Pivot Point R1 98.81
Daily Pivot Point R2 98.99
Daily Pivot Point R3 99.24

 

 

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