US Dollar Index technical analysis: Powell brings DXY up and Trump spoils the bull party

US President Trump announces additional tariffs on China sending USD down.
The correction down can reach 98.38, 98.10 and potentially 97.80.

Flavio Tosti Independent Analyst

DXY daily chart

DXY (US Dollar Index) is trading in a bull trend above its main daily simple moving averages (DSMAs). On Wednesday DXY rose as the Federal Reserve made a hawkish cut of 25bps. This Thursday US President Trump announced new tariffs on China, sending USD down across the board. Interestingly, Fed’s Chair Powell said the trade war was the reason for the interest rate cut.

DXY 4-hour chart

DXY is trading above its main SMAs, suggesting bullish momentum in the medium term. However the market is retracing down sharply and the bulls would need to regain the 98.68 resistance to trade towards 98.93, the 2019 high.

DXY 30-minute chart

DXY is testing the 98.38 support and the 100 SMA while trading below the 50 SMA, all-in-all suggesting a correction down in the near term. The move down can extend towards 98.38, 98.10 and 97.80 if the bears gather enough steam.

Additional key levels

Dollar Index Spot

Overview
Today last price	98.42
Today Daily Change	-0.15
Today Daily Change %	-0.15
Today daily open	98.57

Trends
Daily SMA20	97.42
Daily SMA50	97.21
Daily SMA100	97.25
Daily SMA200	96.91

Levels
Previous Daily High	98.68
Previous Daily Low	98.01
Previous Weekly High	98.09
Previous Weekly Low	97.13
Previous Monthly High	98.68
Previous Monthly Low	96.28
Daily Fibonacci 38.2%	98.42
Daily Fibonacci 61.8%	98.27
Daily Pivot Point S1	98.16
Daily Pivot Point S2	97.75
Daily Pivot Point S3	97.49
Daily Pivot Point R1	98.83
Daily Pivot Point R2	99.09
Daily Pivot Point R3	99.5

Author

Flavio Tosti

Independent Analyst

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