Dollar Index Technical Analysis: Charting a head-and-shoulders ahead of looming tariff deadline

• The dollar index (DXY) hit a four-day low of 94.94 in Asia and could be charting a head-and-shoulders neckline of 94.53.
• The dollar could drop to 94.53 and may find acceptance below that level on fears that the US could impose tariffs on another $200 billion of Chinese goods following the end of a public comment period today.
• However, the USD may appreciate on haven demand if the equities drop on escalating trade tensions.

Daily chart

Spot Rate: 95.00

Daily High: 95.10

Daily Low: 94.94

Trend: Bearish below 94.53 (neckline)

Resistance

R1: 95.18 (100-hour moving average)

R2: 95.74 (Sep. 4 high)

R3: 96.98 (Aug. 15 high)

Support

S1: 94.53 (neckline support)

S2: 94.24 (100-day moving average)

S3: 93.71 (July 9 low)