- The US Dollar Index (DXY) is trading in a bull trend but DXY has made virtually no progress since late May.
- DXY has printed a head-and-shoulder bearish pattern while it is trading below its 50-day simple moving average and the bull trendline (blue line). Bulls are working hard at supporting the market just above the 94.43-51 zone (August 28 swing low and 100-day simple moving average). However, since mid-August DXY has been making lower lows and lower highs which is another clue to add to the bear case. The RSI, MACD and Stochastics indicators are also bearishly configured.
- In the absence of a strong bull breakout above 95.65 the market is set to continue to slide down towards 93.71 (July 9 swing low).
DXY daily chart
Spot rate: 94.60
Relative change: 0.08%
High: 94.73
Low: 94.30
Trend: Bullish
Short-term: Bearish below 95.65
Resistance 1: 94.91 July 27 high
Resistance 2: 95.00 figure
Resistance 3: 95.24 July 13 high
Resistance 4: 95.52 August 6 high
Resistance 5: 95.65 July 19 high
Resistance 6: 96.00 figure
Resistance 7: 97.00, 2018 high
Support 1: 94.43-51 August 28 swing low, 100-day SMA
Support 2: 93.71 July 9 swing low
Support 3: 93.17 June 14 swing low
Support 4: 92.24 May 14 swing low