- DXY bullish momentum fades around the 94.30 region.
- The six-month support line limits declines for now.
The US Dollar Index (DXY) advanced and failed around the 94.30 / 20 zone at the start of Wednesday, where a Fibonacci level (from the fall of 2017-2018) and the 100 SMA coincide. days.
The ongoing volatility and uncertainty surrounding the US elections should leave the very short-term outlook for the dollar uncertain. That said, while the 94.30 area emerges as a fairly strong bullish barrier, the six-month line (now support) in the 93.00 neighborhood is expected to keep declines limited.
As long as the DXY trades below the 200-day SMA, today at 96.56, the negative view is expected to persist.
DXY day chart
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Credits: Forex Street
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