- DXY marks another pullback from seven-week-old horizontal resistance.
- Upward sloping trend line from Tuesday offers immediate support.
- Monthly resistance line, 61.8% Fibonacci retracement add to the upside filters.
US dollar index (DXY) prints mild losses of 0.08% while taking offers around 91.22 during early Friday. In doing so, the greenback gauge versus the major currencies again steps back from the key horizontal resistance while trimming the previous day’s recovery moves from a three-day-long rising support line.
Not only the sustained trading below an immediate hurdle established from early March but the downward sloping trend line from March 31 and a 61.8% Fibonacci retracement of the previous month’s upside moves also back the US dollar index bears.
As a result, the quote is ready to retest the nearby support line, around 91.00 by the press time, before challenging the monthly low, marked earlier in the week, of 90.85.
Should the US dollar remains pressured past-90.85 level, March’s bottom near 90.63 will be the key to follow.
Alternatively, an upside break of 91.35-40 resistance area will aim for the short-term falling trend line hurdle, close to 91.45, as well as a 61.8% Fibonacci retracement level of 91.70.
However, any further upside beyond 91.70 needs to cross the April 16 high of 91.81 to keep the DXY bulls hopeful.
DXY four-hour chart
Trend: Further weakness expected