- The index is looking to revert two consecutive daily pullbacks at the beginning of the week, although gains appear capped around the 96.40 region for the time being.
- In the meantime, the positive outlook around the buck remains unchanged as long as the short-term support line underpins, today at 94.66.
- DXY corrected lower following the bearish divergence in the daily RSI, with support has firmly emerged near the 96.00 handle, where is located the 10-day SMA and is reinforced by the 50% Fibo retracement of the 2017-2018 drop at 96.04. If 96.00 is cleared, the next stop aligns at the 200-week SMA at 95.50 ahead of the 55-day SMA at 95.38.
DXY daily chart
Daily high: 96.41
Daily low: 96.10
Support Levels
S1: 95.92
S2: 95.72
S3: 95.35
Resistance Levels
R1: 96.49
R2: 96.86
R3: 97.06