- DXY edges lower on Monday following the previous session’s downside move.
- More downside if price decisively breaks 92.60.
- Momentum oscillator holds onto the overbought zone with bearish crossover.
US Dollar Index loses momentum in the Asian session on Monday. As of writing, DXY is trading at 92.62, up 0.06% for the day.
DXY daily chart
On the daily chart, after making a high of 93.72 on August 20, DXY slides below 93.00 on August 23. The ascending trendline from the lows of 89.95 acts as defensive for the bulls.
A break below 50-day Simple Moving Average (SMA) at 92.55, would bring more selling opportunities toward the 92.35 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator holds in the overbought zone. Any downtick in the MACD would intensify the selling toward the low of August 5 at 92.05.
Bears would further be encouraged to test the 91.80 horizontal support level.
Alternatively, If it reverses the direction, then the first upside target is located at the 93.06 horizontal resistance level, followed by the 93.25 horizontal resistance zone.
Next, the market participant would like to aim for the high of 93.48 made on August 23.
DXY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD nears 1.1200 after US PCE inflation data
EUR/USD approaches 1.1200 following generally softer-than-anticipated US inflation-related figures. The pair lacks momentum amid tepid European data undermining demand for the Euro. Still, optimism weighs on the USD.
GBP/USD battles the 1.3400 level for a definitive bullish breakout
GBP/USD advances modestly beyond the 1.3400 level after US PCE inflation data showed price pressures continued to recede in August. Sterling Pound aims for fresh yearly highs beyond the 1.3433 peak posted earlier this week.
Gold hovers around $2,670 as US Dollar resumes decline
Gold price retains its bullish bias near fresh record highs, as demand for the US Dollar remains subdued following US PCE inflation figures. The strong momentum around stocks limits demand for the safe-haven metal.
Week ahead – NFP on tap amid bets of another bold Fed rate cut
Investors see decent chance of another 50bps cut in November. Fed speakers, ISM PMIs and NFP to shape rate cut bets. Eurozone CPI data awaited amid bets for more ECB cuts. China PMIs and BoJ Summary of Opinions also on tap.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.