Technical Analysis – US dollar index retreats after strong bullish wave
- US dollar index finds resistance at 200-day SMA
- Stochastic and RSI edge down
The US dollar index is easing somewhat after the aggressive buying interest that started back in September 27. The price added almost 4% and recorded a fresh more-than-two-month high around 103.67, finding resistance at the 200-day simple moving average (SMA).
If the market overcomes the latter obstacle could endorse the bullish pressure towards the 104.50 resistance. Even higher, the 105.80 bar and the 106.35 hurdle, may confirm a long-term upside move.
On the other hand, a move beneath the 103.30 support may open the door for the 101.90 line, which coincides with the 20-day SMA. Slightly lower, the 50-day SMA at 101.50 could switch the bias to bearish again.
The technical oscillators indicate the end of the bullish move. The stochastic is turning down in the overbought area as well as the RSI is heading south above the 70 level.
All in all, the dollar index may return to the downside as the market looks overstretched. A successful trading session above the 200-day SMA could confirm another bullish wave.
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