- The US Dollar Index may find key support near the descending channel’s lower boundary at 106.30.
- The 14-day RSI is below 50, signaling increasing bearish momentum.
- The primary resistance appears at the nine-day EMA at 107.47
The US Dollar Index (DXY) edges higher after registering losses in the previous two consecutive sessions, trading around 106.90 during the European hours on Monday. A review of the daily chart suggests a prevailing bearish bias as the index consolidates within the descending channel pattern.
However, the 14-day Relative Strength Index (RSI) is positioned below the 50 level, indicating a strengthening bearish momentum. Furthermore, the US Dollar Index remains positioned below the nine- and 14-day Exponential Moving Averages (EMAs), confirming the short-term price momentum is weaker.
On the downside, the DXY could approach the lower boundary of the descending channel at 106.30 level, followed by the psychological level of 106.00. A break below this level could reinforce the bearish bias and put downward pressure on the index to test the three-month low at 105.41, which was recorded on December 6.
Regarding resistance, the DXY could find its primary resistance at nine-day EMA at 107.47, followed by 107.66. A decisive break above these levels would improve the short-term price momentum and support the pair to explore the region around the descending channel’s upper boundary at 109.50 level, followed by the five-week high of 109.80, last tested on February 3.
US Dollar Index: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
