- US Dollar Index (DXY) fails to pick up bids despite multiple bounces off 100-bar SMA.
- Sellers look for confirming further downside, aim to defy the channel amid bearish MACD.
With the increasing odds of the Democratic presidency in American weighing on the US dollar, the DXY remains pressured around 93.37, down 0.06% intraday, during early Thursday.
In doing so, the greenback gauge versus the major currencies marks another battle with the 100-bar SMA while negating the previous day’s uptick to the five-week top.
Considering the pair’s inability to stay positive beyond the key SMA, coupled with bearish MACD, the USD barometer is likely to confirm further downside by breaking the lower line of an ascending trend channel from October 20, at 93.28 now.
Following that, the early October lows near 93.00 can offer an intermediate halt before dragging the quote towards the previous month’s bottom of 92.47.
Alternatively, the mid-October tops near 93.90 may act as nearby resistance ahead of the 94.00 threshold. Though, any more upside beyond the psychological magnet will be tamed the upper line of the stated channel, currently around 94.50.
DXY four-hour chart
Trend: Further weakness expected
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