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DXY Price Analysis: A further drop to 105.00 seems likely

  • DXY is under further downside pressure near 106.00.
  • Further weakness could see the 105.00 area retested in the short term.

The US Dollar Index (DXY) falls for the third session in a row and once again challenges the 106.00 zone ahead of the release of US inflation figures.

If the selling bias gathers pace, the dollar risks a deeper pullback to initially the August low near 105.00 (Aug 2). This initial containment zone appears to be reinforced by the 55 day simple moving average today at 105.19.

The constructive short-term stance is expected to remain supported by the 6-month support line today near 104.50.

Furthermore, the broader bullish view on the dollar holds as long as it is above the 200 SMA at 99.93.

DXY day chart

Dollar Index Spot

Panorama
Last Price Today 106.01
Today’s Daily Change -0.27
Today’s Daily Change % -0.25
Today’s Daily Opening 106.28
Trends
20 Daily SMA 106.79
50 Daily SMA 105.38
100 Daily SMA 103.38
200 Daily SMA 99.82
levels
Previous Daily High 106.41
Previous Daily Minimum 105.97
Previous Maximum Weekly 107.43
Previous Weekly Minimum 105.54
Monthly Prior Maximum 109.29
Previous Monthly Minimum 104.69
Daily Fibonacci 38.2% 106.14
Daily Fibonacci 61.8% 106.24
Daily Pivot Point S1 106.03
Daily Pivot Point S2 105.78
Daily Pivot Point S3 105.59
Daily Pivot Point R1 106.47
Daily Pivot Point R2 106.66
Daily Pivot Point R3 106.91

Source: Fx Street

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