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US Dollar Index (DXY) Breaks Below the 93.00 Support Level

July 22, 2021

Talking Points:

  • DXY falls in early trading in the Asian session, retreating from 92.84.
  • The 200-day Simple Moving Average (SMA) will be an obstacle for the bears while the bulls need to break through the  93.05 level to regain control of the market.

 

DXY falls towards 92.77, wiping out any initial gains made during today’s Asian session.

This has resulted in the USD benchmark bouncing back and forth around the 100-day SMA while continuing yesterday’s breakdown from the ascending support line and now turned into the resistance line, from the 15th of July.

With the bearish MACD, RSI and the breakdown from the ascending trend line, we may see the DXY suffering further declines with the bears targeting the 200-day SMA level of 92.60.

However, the bears might take a break around the 200-day SMA at 92.60 or they may drive on and target the monthly low around the 92.00 mark if they remain unchallenged.

On the flip side, the US Dollar Index bulls need to break through the 93.05 resistance line, comprising of a three-day-old horizontal line and previous support line, to regain control of the market.

If the bulls are able to regain control their next target will be the yearly high of around 93.45 in doing so they will get the market’s attention.

In summary, the DXY should see a short-term pullback however the overall bullish sentiment in the market hasn’t changed.

 

DXY Hourly Chart:

 

 

 

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