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US Dollar Index Price Analysis: Overbought Levels Could Spark a Corrective Move

  • DXY rises to fresh highs near 110.30 on Monday.
  • A technical correction should not be ruled out.

The US Dollar Index (DXY) extends the rise to the 110.30 zone, where it seems to have found some initial resistance.

The short-term bullish view on the dollar holds for now and is underpinned by the 7-month support line today around 105.70.

However, the current overbought conditions in the index could trigger some downward correction, which should be seen as a buying opportunity.

Continuing with the uptrend, the breakout of the recent high could face the next barrier at the weekly highs of 111.90 (June 6, 2002) and 113.35 (May 24, 2002).

Looking at the long-term scenario, the bullish view on the dollar holds as long as it is above the 200-day SMA at 101.06.

DXY daily chart

Technical levels

Dollar Index Spot

Last Price Today 109.86
Today’s Daily Change 0.26
Today’s Daily Change % 0.24
Today’s Daily Opening 109.6
20 Daily SMA 107.64
50 Daily SMA 106.89
100 Daily SMA 104.93
200 Daily SMA 100.95
Previous Daily High 109.72
Previous Daily Minimum 108.93
Previous Maximum Weekly 110
Previous Weekly Minimum 108.27
Monthly Prior Maximum 109.48
Previous Monthly Minimum 104.64
Daily Fibonacci 38.2% 109.23
Daily Fibonacci 61.8% 109.42
Daily Pivot Point S1 109.12
Daily Pivot Point S2 108.63
Daily Pivot Point S3 108.32
Daily Pivot Point R1 109.91
Daily Pivot Point R2 110.21
Daily Pivot Point R3 110.7

Source: Fx Street

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