DXY Technical Analysis: Constructive outlook persists while above short-term support line at 94.80

• The index is finally seeing some light at the end of the tunnel, looking to regain some buying interest following yesterday’s low near 94.90, level coincident with the 55-day SMA.
• The index met a wave of selling pressure after hitting new cycle peaks in the 97.00 neighbourhood earlier in the month, all in response to a pick up in the risk-on trade, political jitters surrounding President Trump and criticism to the Fed’s policy of raising rates.
• In the meantime, the 55-day SMA at 94.92 continues to offer initial support, while the positive outlook, and therefore a potential re-visit to highs near the 97.00, looks unchanged as long as the short-term support line around 94.80 holds. This area is also reinforced by the top of the daily cloud.

DXY daily chart

Daily high: 95.49

Daily low: 95.11

Support Levels

S1: 94.89

S2: 94.69

S3: 94.44

Resistance Levels

R1: 95.34

R2: 95.59

R3: 95.79