- The intraday charts of the DXY index favor an oversold bounce.
- The 50 hourly SMA at 90.12 could offer resistance.
The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, is trading near the 89.95 level during Friday’s European session, after hitting a 32-month low at 89.73 on Thursday.
The 15-minute and 1-hour charts show a bullish divergence from the RSI. Meanwhile, the RSI on the 4-hour chart remains in oversold territory below 30.
As such, the DXY index could rally towards the descending 50 hourly simple moving average, currently at 90.12. A breakout from that level would expose the 90.42 hurdle.
On the other hand, the rejection at the 50-hour SMA would reinforce the broader bearish outlook and shift the risk in favor of a dip to new multi-month lows.
US Dollar Index DXY 1 hour chart
US dollar DXY index technical levels
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