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DXY daily chart

  • The US Dollar Index (DXY) is trading in a bull trend above its main simple moving averages (SMAs).
  • The greenback is being sold despite better-than-anticipated Nonfarm Payrolls (NFP) data in April at  3.2% vs. 3.3% while the Average Hourly Earnings came in slightly lower than expected at 3.2% vs. 3.3% YoY in April.

DXY 4-hour chart

  • Yesterday, I mentioned 98.10 as the main bull target and it got hit to the tick today on the NFP.

DXY 30-minute chart

  • DXY is strongly rejecting  98.10 resistance while the market is trading above its main SMAs, suggesting that the market is in a consolidation phase.
  • A break below 97.80 support can, lead to further losses to 97.60 and potentially to 97.20 if the bears gather enough steam.
  • The level to beat for bulls is 98.10 after which 98.34 resistance comes into play.

Additional key levels