US Dollar Index Price Analysis: DXY bears stay hopeful on head-and-shoulders confirmation

• DXY trims early Asian session gains, sellers cheer confirmation of a bearish chart pattern.
• Sustained break of one-week-old support line, bearish MACD also favor the sellers.

US dollar index (DXY) takes a U-turn from an intraday high of 91.86 to 91.81, still up 0.05% on a day, amid the early Thursday’s trading. The greenback gauge dropped during the last two consecutive days while confirming the head-and-shoulders (H&S) pattern on the hourly chart.

DXY bears also cheer downbeat MACD and the previous day’s break of an ascending trend line from March 03.

As a result, the latest pullback gains fewer accolades unless crossing the neckline of the bearish formation surrounding the 92.00 threshold. Also acting as an upside barrier is the previous support line, at 92.26 now.

Should the quote rises past-92.30, the monthly peak near 92.50 and 200-day SMA on the daily chart close to 92.85 will be the key hurdles to watch.

Meanwhile, 50% and 61.8% Fibonacci retracement of the early March upside, respectively near 91.55 and 91.35, can lure the DXY bears during the quote’s further downside before highlighting the monthly low around 90.65.

DXY hourly chart

Trend: Further weakness expected