- The DXY partially puts aside the recent sharp decline and recovers to 106.00.
- The 200-day moving average, near 105.30, continues to appear as hard support.
The dollar index from USA (DXY) finally regains its smile and retakes the area above the 106.00 barrier after three daily falls in a row on Friday.
There is a strong containment zone near 105.30, where the November low and 200 SMA converge.
Meanwhile, the DXY bearish pressure is expected to ease a bit if it breaches the weekly high at 107.99 (Nov 21). Further rally should see the 100-day SMA at 109.15 ahead of the nine-month resistance line near 110.00.
As long as it is above the 200-day SMA at 105.32, the outlook for the index should remain constructive.
DXY day chart
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
