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Technical Analysis: US dollar bears have more room to cheer below two-year low

Despite bouncing off the early-June low, US dollar index (I.USDX) stays below multi-day-old support lines, now resistance, during early Tuesday. Hence, the greenback gauge is likely to extend the south-run towards June month's low of 93.18 and the 93.0 round-figures unless bouncing back beyond the support-turned-resistance. It should, however, be noted that the USD barometer's declines past-93.00 will make it vulnerable to visit horizontal support comprising early-September 2017 low and late-February 2019 top around 91.00.

In a case where the I.USDX rallies past-95.00, comprising an ascending trend line from June 10, 2018, the early June 2020 low around 95.70 can entertain the buyers before challenging them with 200-week SMA level of 96.18. If at all the bulls manage to cross 200-week SMA, 61.8% Fibonacci retracement level of 97.85 and April month's low near 98.80/75 might offer intermediate halts during the rise towards 100.00 psychological magnet.

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