US Dollar Index Price Analysis: DXY flirts with 96.00 key support

• DXY picks up bids to consolidate the heaviest daily fall in two weeks.
• 50-DMA, 21-DMA and 50% Fibonacci retracement limit immediate downside.
• Bulls may aim for 96.50 hurdle as MACD backs the rebound.

US Dollar Index (DXY) defend 96.00 during a sluggish Asian session on Wednesday.

The greenback gauge dropped the most since February 03 the previous day but convergence on the 21-DMA and 50-DMA restricted the quote’s further downside. Also challenging the DXY bears is the 50% Fibonacci retracement (Fibo.) January’s upside.

It’s worth noting that the MACD teases bulls of late, which in turn suggests the continuation of the latest rebound.

However, a six-week-old horizontal area surrounding 96.50 will be a tough nut to crack for the US Dollar Index bulls, a break of which will escalate the run-up towards the previous month’s peak of 97.44.

During the run-up, the 97.00 threshold will act as an intermediate halt.

On the flip side, 61.8% Fibo. level near 95.70 acts as immediate support to watch during the quote’s clear declines past-96.00.

Following that, the monthly low of 95.13 and 2022 bottom surrounding 94.62 will gain the US Dollar Index bears’ attention.

DXY: Daily chart

Trend: Further recovery expected