- The DXY partially reverses Friday’s retracement and is approaching 96.00.
- Recent lows at 95.50 should contain weakness for now.
The recent correction in the Dollar Index (DXY) appears to have found some decent containment in the 95.50 region so far.
A break out of the 95.50 zone should allow an immediate test of the 55-day SMA at 95.39. On the other hand, if the bulls manage to regain control, an attempt at the maximum in months just below the 97.00 barrier (November 24) is not ruled out.
Meanwhile, if the DXY continues above the 4-month support line (from the September low) around 94.80, the constructive tone should remain unchanged. Also, the broader positive stance is supported by the 200 SMA at 92.99.
DXY day chart
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