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The rally fails near 91.60

  • The DXY extends the advance and recovers 91.00.
  • Further north, February highs emerge around 91.60.

The DXY adds to the recent rally and recovers the key barrier at 91.00, the figure from the beginning of the week.

While the bulls have regained the upper hand, the bullish momentum may extend to the February highs at the 91.60 zone (February 5), where the rally is seen to fail. Before this key resistance, there is a minor obstacle at the 100-day SMA, today at 91.31.

Despite the ongoing move, a further rise in the index is seen as corrective only amid the broader bearish view of the dollar. With that said, the area above 91.00 and beyond could well represent an opportunity to enter short trade.

Long-term, as long as DXY trades below the 200-day SMA (93.08), the negative stance is expected to persist.

Daily chart

Technical levels

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