Refer DXY chart on Trading View
- The US dollar index has retraced from 13-month highs at 96.98 and is currently trading 0.29% lower on the day at 96.44.
- Intraday charts have turned bearish. Price action has dipped below cloud and we see bearish divergence which adds to downside bias.
- Shooting star formation seen on daily charts and price has dipped below 5-DMA at 96.49.
- Price is holding support at 1H 100-SMA at 96.42. Break below will see further weakness.
- Next immediate support is seen at 96.31 (23.6% Fib) ahead of 1H 200-SMA at 95.84 and then 21-EMA at 95.50.
- On the flipside, retrace and close above 5-DMA could see grind higher.
Support levels - 96.42 (1H 100-DMA), 96.31 (23.6% Fib), 95.84 (1H 200-SMA), 95.50 (21-EMA)
Resistance levels - 96.49 (5-DMA), 96.98 (Aug 15 high), 97
Recommendation: Good to go short on break below 1H 100-SMA, SL: 97, TP: 95.84/ 95.50
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 4.40077 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
