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  • DXY struggles to extend recovery moves, recently off intraday low.
  • Break of one-week-old horizontal area, bullish MACD favor buyers.
  • Descending trend line from May 05 adds to the upside filters.

US dollar index (DXY) edges higher while defending 90.00 level during early Thursday. In doing so, the greenback gauge justifies the previous day’s break of horizontal resistance, now support, but battles 50-SMA amid bullish MACD.

Given the quote’s sustained recovery, greenback buyers back attack the short-term SMA level of 90.27 but the DXY bulls are less likely to be teased until the index stays below a two-week-old falling trend line near 90.50.

Even if the quote manages to cross 90.50, the previous week’s top near 90.92 and the monthly high around 91.45 could test the quote’s further upside.

Alternatively, a downside break of 90.00 will redirect the US dollar index towards the recently flashed bottoms near 89.70.

However, any further weakness past 89.70 won’t hesitate in challenging the yearly low near 89.20.

DXY four-hour chart

Trend: Further recovery expected

 

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