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  • The US Dollar Index (DXY) is still technically in a bull trend, however, the trend is starting to show  signs of weaknesses. DXY is essentially at the same price as in late May of this year.  
  • DXY is failing to make higher highs since August 15, it is trading below its flat 50-day simple moving average (SMA) and broke below the bull trendline from mid-May. DXY is also forming a head-and-shoulder (bearish) pattern.  
  • It is currently challenging the 94.43 (August 28 swing low) along with the 100-day SMA. A break below the level will be considered bearish as the Greenback Index would then start making lower highs and lower lows, which is the hallmark of a bear trend.  Additionally, indicators such as RSI, MACD and Stochastics are bearish and indicative of lower prices ahead. A break of 94.43 (August 28 swing low) would open the gates to 93.71 (July 9 swing low) and (93.17 June 14 swing low).  
  • Conversely, a  bull breakout above 95.65 resistance would invalidate the bearish case for DXY and this slowdown would then  be seen just as another pullback.

DXY daily chart

Spot rate:                 94.55
Relative change:     -0.31%
High:                        94.97
Low:                         94.43

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:               94.43-45 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

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