- The US Dollar Index (DXY) is trading in a bull channel but the price has actually made no progress since late May.
- DXY is forming a head-and-should pattern and although the shape of it is not perfect the bearish dynamics at play remains the same. DXY has still quite a lot of resistance to go through if the bears want to take control: the bull trendline from May 14, 94.43 support (August 28 swing low) and the 100-day simple moving average (SMA). Interestingly, the RSI, the MACD and the Stochastics have turned bearish.
- A bear breakout below 94.43 is needed to confirm a neutral to bearish bias while a bull breakout above 96.65 would be considered as the resumption of the main bull trend.
DXY daily chart
Spot rate: 94.84
Relative change: -0.32%
High: 95.28
Low: 94.73
Trend: Bullish
Short-term: Bearish below 95.65
Resistance 1: 95.00 figure
Resistance 2: 95.24 July 13 high
Resistance 3: 95.52 August 6 high
Resistance 4: 95.65 July 19 high
Resistance 5: 96.00 figure
Resistance 6: 97.00, 2018 high
Support 1: 94.91 July 27 high
Support 2: 94.43 August 28 swing low
Support 3: 93.71 July 9 swing low
Support 4: 93.17 June 14 swing low
Support 5: 92.24 May 14 swing low