US Dollar Index Price Analysis: Corrective pullback battles with 200-day EMA
- DXY bounces off monthly low to snap three-day downtrend.
- Convergence of 100-day EMA, 10-week-old support line offers strong support.
- Two-week-old descending trend line adds to the upside filters.
US Dollar Index (DXY) consolidates recent losses around 92.15, up 0.05% intraday during early Monday.
In doing so, the greenback gauge prints a daily positive for the first time in four days while keeping the bounce off monthly low flashed the previous day.
Given the bearish MACD signals and the quote’s sustained stay below a short-term falling trend line, US Dollar Index is likely to remain pressured.
However, a clear downside break of 92.05, comprising the 100-day EMA and an ascending support line from June 23, becomes necessary for the bears to extend the governance.
It’s worth noting that the 92.00 round figure will check the DXY bears past 92.05 before directing them to the lows marked in July and late June, respectively around 91.78 and 91.50.
On the contrary, the US Dollar Index run-up beyond 200-day EMA, near 92.17, becomes necessary for the extension of the latest corrective pullback.
However, a short-term resistance line near 92.55 and the double tops marked during July and early August, near 93.20, will be key hurdles to watch afterward.
DXY: Daily chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
