Around 98.50, the US Dollar Index is trying to breach below the rising channel.
Positioned near the 50 level, the 14-day Relative Strength Index indicates a neutral market tendency.
The nine-day EMA at 98.76 is the main obstacle.
The US Dollar Index (DXY), which compares the value of the US dollar (USD) to six major currencies, is trading at 98.60 on Tuesday during Asian hours, continuing its two-day losing streak. According to the technical analysis of the daily chart, there may be a change in momentum from bullish to bearish when the dollar index tests the lower bound of the ascending channel pattern.
Since the DXY fell below the nine-day Exponential Moving Average (EMA), the short-term price momentum is weaker. Furthermore, the market bias is neutral, as indicated by the 14-day Relative Strength Index (RSI) being situated at the 50 level. A directional bias will become evident with additional movements.
On the downside, the US Dollar Index would test the 50-day EMA at 98.36 if it were to successfully break below the ascending channel at the psychological level of 98.50. The DXY would be able to move through the area around the September 17 low of 96.22, the lowest since February 2022, if there were any more drops below this confluence support zone.
To boost short-term price momentum, the US Dollar Index might try to break above the nine-day EMA at 98.76. This could bring the index closer to the two-month high of 99.56, which was hit on October 9. The August 1 five-month high of 100.26 and the upper border of the ascending channel at 101.00 provide additional resistance.
Positioned near the 50 level, the 14-day Relative Strength Index indicates a neutral market tendency.
The nine-day EMA at 98.76 is the main obstacle.
The US Dollar Index (DXY), which compares the value of the US dollar (USD) to six major currencies, is trading at 98.60 on Tuesday during Asian hours, continuing its two-day losing streak. According to the technical analysis of the daily chart, there may be a change in momentum from bullish to bearish when the dollar index tests the lower bound of the ascending channel pattern.
Since the DXY fell below the nine-day Exponential Moving Average (EMA), the short-term price momentum is weaker. Furthermore, the market bias is neutral, as indicated by the 14-day Relative Strength Index (RSI) being situated at the 50 level. A directional bias will become evident with additional movements.
On the downside, the US Dollar Index would test the 50-day EMA at 98.36 if it were to successfully break below the ascending channel at the psychological level of 98.50. The DXY would be able to move through the area around the September 17 low of 96.22, the lowest since February 2022, if there were any more drops below this confluence support zone.
To boost short-term price momentum, the US Dollar Index might try to break above the nine-day EMA at 98.76. This could bring the index closer to the two-month high of 99.56, which was hit on October 9. The August 1 five-month high of 100.26 and the upper border of the ascending channel at 101.00 provide additional resistance.
