- DXY refreshes weekly low but defends 90.00 threshold.
- Yearly horizontal support tests sellers, confluence of seven-week-old resistance line, 21-day SMA restricts short-term upside.
US dollar index (DXY) bounces off intraday low, rather weekly bottom, while picking up bids near 90.11 during early Tuesday. Even so, the greenback gauge remains 0.14% down on a day by the press time.
Given the quote’s sustained weakness from the short-term SMA and key resistance line, DXY is on the way to re-test the yearly horizontal support near 90.00-89.95.
It should, however, be noted that multiple supports can test DXY bears, also the likely oversold Momentum line, during the gauge’s further weakness below 89.95, a break of which will challenge February low near 89.70.
On the contrary, 90.50 may entertain the intraday buyers in case of a corrective pullback ahead of highlighting the 90.75 resistance confluence.
If at all DXY jumps above 90.75 on a daily closing basis, the monthly peak surrounding 91.45 will be in the spotlight.
DXY daily chart
Trend: Bearish
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