Tests support in the 91.60 region

  • The DXY index remains stable at the start of the European session.
  • Holding onto the rising trend line keeps the bulls hopeful.
  • Bearish MACD warrants caution before opening aggressive positions.

The DXY US Dollar Index maintains the decline of the previous day and is consolidating near the 91.60 level after testing multi-week lows.

At the time of writing, the DXY Index is trading at 91.68, gaining 0.03% on the day.

On the daily chart, the dollar index has been consolidating within a narrow range where lows remain near the 50-day moving average at 91.65. That level coincides with the upward sloping line that extends from the March 25 lows near 89.70.

Looking down, prices could test the horizontal support zone near the 91.35 level.

A sustained move below the mentioned level would point to the 100-day SMA, today at 91.03. A breakout of that region would confirm a downtrend and could reach monthly lows near 90.60.

On the other hand, the MACD indicator remains above the midline, although with a bearish crossover.

A slight move to the upside would put the bulls back in motion, where they would first target Wednesday’s high near 91.85 and then move towards the psychological level of 92.00.

Should it rise above that region, the price could move towards the April 7 highs near the 92.50 level.

US Dollar Index DXY Daily Chart

DXY

US Dollar Index DXY Additional Levels

.

You may also like