6 Jan 2020
US Dollar Index Technical Analysis: Extra downside could re-test 96.36
- DXY remains under pressure and off recent tops above 97.00.
- December’s low at 96.36 appears as the next target to the downside.
DXY has started the week on a soft note and continues to fade Friday’s uptick to the 97.10 region, or yearly highs so far.
The continuation of the selling impetus could drag the index to 96.36 (monthly low December 31st) ahead of a potential visit to the 96.00 neighbourhood, where sits a Fibo retracement of the 2017-2018 drop.
On the upside, there is a minor hurdle at Friday’s top near 97.10, ahead of the 21-day SMA at 97.17. Further up is located the critical 200-day SMA (97.69). Above this level, the dollar should regain the constructive outlook.
