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  • DXY consolidates the previous day’s gains, refreshes intraday low of late.
  • Bearish MACD, failures to cross short-term moving average keep sellers hopeful.
  • Six-week-old falling trend line adds to the upside barriers.

US dollar index (DXY) takes offers around 90.68, down 0.11% intraday, during early Thursday. While the Asian traders seem to lick the previous day’s US Consumer Price Index (CPI)-led wounds, the greenback gauge’s inability to cross 10-day SMA (DMA) favor short-term sellers.

Not only the failures to cross 10-DMA but bearish MACD also suggest pullback of the US dollar.

Hence, a 10-pip area comprising levels marked since late February, around 90.45-35, regains the market’s attention ahead of the monthly bottom near the 90.00 psychological magnet.

In a case where DXY bears keep reins past 90.00, February’s bottom close to 89.70 should be targeted for short positions.

On the flip side, a daily closing beyond the 10-DMA level of 90.78 is a guaranteed call to the greenback buyers as a downward sloping trend line from March 31, near 91.00, tests the following upside moves.

DXY daily chart

Trend: Pullback expected

 

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