DXY eyes further decline beyond 96.00 in nearby trading range
- DXY refreshes intraday low while reversing Monday’s gains.
- Bearish MACD signals, failures to stay above 96.00 keep sellers bullish.
- 61.8% of the Fibonacci retracement level, a two-month-old support line limits the near-term decline.
The US Dollar Index (DXY) takes offers around 95.85, down 0.10% during the day Tuesday morning in Europe.
In doing so, the greenback gauge remains in a 70 pip range between an ascending support line from mid-November and monthly resistance, around 95.65 and 96.30 respectively.
Given the latest drops in the quote below the 50% Fibonacci retracement level (Fibo.) From November 15-24, coupled with bearish signals from the MACD, DXY prices are expected to experience further losses.
However, 61.8% Fibo. and the aforementioned support line, near 95.70 and 95.65 in that order, challenges the gauge’s near-term decline.
If the US Dollar Index (DXY) stays below 95.65, bears may aim for supports at 95.50 and 95.00.
Meanwhile, recoveries may initially struggle against the 50% and 38.2% Fibonacci retracement levels, around 95.18 and 96.20 respectively.
It should be noted that bulls on the DXY remain cautious until the quote breaks above 96.30, a break of which will recall the round numbers 96.70 and 97.00 on the chart.
DXY: four hour graph
Trend: Further declines expected