- The 1 hour chart of the DXY index shows a bearish RSI pattern.
- A small drop to the support of the 50 hourly SMA can be expected.
The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, is declining from the daily high of 92.50.
The pullback may extend further as the RSI on the 1 hour chart shows a bearish divergence. It occurs when an indicator records lower highs that contradict higher highs on the price chart and often paves the way for further price pullbacks.
The DXY index may test the support of the 50 hourly simple moving average, currently at 92.07.
The broader outlook will remain bullish as long as the previous resistance, now converted to support at 91.60 (February 5 high), remains intact.
The DXY index rose for the fourth day in a row on Monday, as Treasury bond yields remained elevated, helping the dollar to strengthen after the US Senate’s decision to pass the 1.9 stimulus program. trillion dollars from President Joe Biden.
US Dollar Index DXY 1-hour chart
US Dollar Index DXY Technical Levels
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