- DXY retraces part of Friday’s strong advance and returns to 106.30.
- Further weakness could see recent lows near 105.00 revisited.
On Monday, the US dollar index (DXY) is under pressure and partially reverses Friday’s gains to around 107.00.
Continuing selling pressure could facilitate a deeper pullback to initially the August low near 105.00 (Aug 2). This initial containment zone appears to be reinforced by the 55-day SMA.
The constructive short-term stance is expected to remain supported by the 6-month support line today near 104.30.
Also, the broader bullish view on the dollar holds as long as it is above the 200-day SMA at 99.81.
Technical levels
Source: Fx Street
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