Technical Analysis – US dollar index continues to feel selling interest
US dollar index pulls back from 101.90
50- and 200-day SMAs post bearish cross
Stochastic dives towards oversold region
The US dollar index has declined considerably from the 101.90 resistance level, standing beneath the 20-day simple moving average (SMA). Furthermore, the 50- and the 200-day SMAs recorded a bearish crossover, while the technical oscillators indicate a negative bias. The stochastic is heading towards the oversold territory, while the RSI is moving horizontally beneath the 50 level.
More downside pressure could open the way for a test of the eight-month low of 100.40, while even lower, a violation of the 99.25 trough, taken from the lows in in July 2023 would confirm the strong bearish structure.
Alternatively, a successful attempt above the 101.90 resistance may drive the bulls until the 50-day SMA at 103.00 before resting around the 103.30 hurdle. Upside moves may be halted by the 200-day SMA at 103.65.
In brief, the US dollar index has tumbled more than 5% since it topped at 105.80 and only a decisive move beyond the downtrend line may change the outlook to positive.Related Assets
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