The Dollar Index drops after weaker than expected US data. The bias remains bearish as long as it stays under the 150% Fibonacci line. DXY has rebounded, but this could be only a temporary recovery before dropping deeper. The DXY Dollar Index price extended its sell-off after the US data release. Now, the index is located at 92.12 level above 91.94 today’s low. It’s fighting hard to rebound after its massive drop. –Are you interested to learn more about day trading brokers? Check our detailed guide- As you already know, the Nonfarm Payrolls indicator was reported worse than expected at 235K in August compared to 720K expected and versus 1053K in July. In addition, the Final Services PMI dropped from 55.2 to 55.1 points, even if the specialists have expected the indicator to remain steady at 55.2 points. The DXY has recovered a little, but it remains to see how it will react as the ISM Services PMI dropped unexpectedly lower, from 64.1 points to 61.7 points below 61.9 expected. But, again, the volatility is high, so you should stay away until the markets calm down a little after these high-impact data. DXY has only because the US Unemployment Rate dropped from 5.4% to 5.2% as expected, while the Average Hourly Earnings indicator has increased by 0.6%, exceeding the 0.3% estimate. Technically, the bias is bullish in the short term after failing to stabilize above 93.43 higher high. Further, the drop signals USD’s depreciation versus its rivals. Get FREE Forex Signals Now! Dollar Index price technical analysis: Key dynamic support DXY Dollar Index 4-hour price chart The DXY price has found support below the weekly S2 (92.06) right on the descending pitchfork’s upper median line (UML). However, the rebound could be only a temporary one. The pressure is high, so the index could drop anytime. USD could lose more ground versus the other major currencies if the index slips lower. –Are you interested to learn more about forex signals? Check our detailed guide- From the technical point of view, the upper median line (UML) was seen as a dynamic support. 91.78 and 91.51 are seen as downside targets as well if the DXY resumes its downside movement. The Dollar Index moves up and down very quickly in the short term. The battle between bulls and bears intensified after the US data dump. You should know that the bias remains bearish if it stays below the 150% Fibonacci line. Making a new lower low could activate a larger downside movement. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Forex News Today: Daily Trading News share Read Next NZD/USD Weekly Forecast: Bulls Target 0.73 amid USD Oust Post-NFP Saqib Iqbal 1 year The Dollar Index drops after weaker than expected US data. The bias remains bearish as long as it stays under the 150% Fibonacci line. DXY has rebounded, but this could be only a temporary recovery before dropping deeper. The DXY Dollar Index price extended its sell-off after the US data release. Now, the index is located at 92.12 level above 91.94 today’s low. It’s fighting hard to rebound after its massive drop. –Are you interested to learn more about day trading brokers? Check our detailed guide- As you already know, the Nonfarm Payrolls indicator was reported worse than expected at… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.