- July 1, 2021
- Posted by: Analysis Team
- Category: Forex News
- DXY bulls take a breather during a four-day uptrend, near early April tops.
- 23.6% Fibonacci retracement guards immediate upside, three-week-old support line becomes the key.
- Bulls remain hopeful beyond 200-DMA, ascending trend line from May adds to the upside filters.
US dollar index (DXY) steps back from intraday high to 92.38 while staying around the three-month top during early Thursday.
The USD gauge jumped to the highest since April 06 the previous day but overbought RSI conditions seem to restrict immediate upside around 23.6% Fibonacci retracement of January–March upside, near 92.45.
It should, however, be noted that the DXY bears aren’t likely to be serious until the quote stays beyond an ascending support line from June 11, close to 92.14.
Also acting as the key downside level is the 92.00 threshold and 200-DMA near 91.45.
On the flip side, a clear break of the immediate Fibonacci retracement level near 92.45 will be questioned by a two-month-long resistance line around 92.65 and the 93.00 round-figure before the yearly top of 93.45.
Overall, DXY remains on the bull’s radar but intermediate pullback can’t be ruled out.
DXY DAILY CHART