US Dollar Index Price Analysis: DXY eyes further downside past 96.00 inside nearby trading range

• DXY refreshes intraday low while reversing Monday’s gains.
• Bearish MACD signals, failures to stay beyond 96.00 keep sellers hopeful.
• 61.8% Fibonacci retracement level, two-month-old support line restricts short-term downside.

US Dollar Index (DXY) takes offers around 95.85, down 0.10% intraday during early Tuesday morning in Europe.

In doing so, the greenback gauge stays within a 70-pip trading range between an ascending support line from mid-November and a monthly resistance, respectively around 95.65 and 96.30.

Given the quote’s latest declines below the 50% Fibonacci retracement (Fibo.) level of November 15-24 upside, coupled with the bearish MACD signals, DXY prices are likely to witness further losses.

However, 61.8% Fibo. and the aforementioned support line, close to 95.70 and 95.65 in that order, challenges the gauge’s short-term downside.

Should the US Dollar Index (DXY) stay below 95.65, bears can eye for 95.50 and 95.00 supports.

Meanwhile, recovery moves may initially battle 50% and 38.2% Fibonacci retracement levels, around 95.18 and 96.20 respectively.

It’s worth noting that the DXY bulls remain cautious until the quote rises past 96.30, a break of which will recall the 96.70 and the 97.00 round figure on the chart.

DXY: Four-hour chart

Trend: Further declines expected