Technical Analysis:
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Bearish Momentum: The DXY remains within a descending channel, indicating a bearish trend. The 14-day Relative Strength Index (RSI) is below the 50 level, further supporting the bearish outlook.
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Resistance Levels: Immediate resistance is at the nine-day Exponential Moving Average (EMA) of 99.39. A break above this could lead to a test of the channel’s upper boundary around 100.30. Surpassing this zone may shift the bias to bullish, targeting the 50-day EMA at 100.81 and potentially the three-month high of 104.37 reached on April 1.
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Support Levels: On the downside, support lies at 97.91, the lowest level since March 2022, recorded on April 21. This aligns with the lower boundary of the descending channel around 97.80.
Currency Performance:
In today’s trading, the US Dollar showed mixed performance against major currencies. It was weakest against the New Zealand Dollar, with a decline of 0.06%. The Dollar also saw slight decreases against the Euro and Australian Dollar, while gaining modestly against the Japanese Yen.
Market Outlook:
The DXY’s current position below key moving averages and within a descending channel suggests continued bearish pressure. Traders should watch for a decisive move above 99.39 to indicate potential bullish momentum, while a drop below 97.91 could signal further declines.
