US Dollar Index Price Index: DXY bears stay hopeful below 21-DMA around 112.00
- US Dollar Index holds lower ground after the downbeat Monday.
- Sustained break of 21-DMA, bearish oscillators favor sellers.
- Ascending support line from August 10 lures bears, buyers need validation from 113.30.
US Dollar Index (DXY) remains pressured around the 112.00 threshold, keeping the week-start pessimism during Tuesday’s Asian session.
In doing so, the greenback’s gauge versus the six major currencies justifies the previous day’s downside break of the 21-DMA, the first in a fortnight, as well as the bearish MACD signals and downbeat RSI (14).
With this, the sellers are en route to an upward-sloping support line from early August, around 111.30 by the press time.
However, the quote’s further weakness appears difficult as early September’s peak and the monthly low, respectively around 110.80 and 110.00, will challenge the US Dollar Index bears afterward.
Meanwhile, recovery moves need to provide a daily closing beyond the 21-DMA hurdle of 112.45.
Even so, a three-week-old horizontal resistance near 113.30 will be a major challenge to the DXY bulls.
Following that, a run-up towards refreshing the 20-year high, currently around 114.80, can’t be ruled out.
Overall, DXY is likely to witness further downside but the road to the south is bumpy.
DXY: Daily chart
Trend: Limited downside 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.
