US Dollar Index: Modest gains near 101.000, stagnant around YTD lows
- DXY faces resistance at the 20-day EMA, with bulls needing to reclaim this level and the 102.000 mark to break the sideways trend.
- DXY support lies at a weekly low of 101.041, with further levels under 101.000, including the YTD low of 100.788.
The US Dollar Index (DXY), a gauge of the greenback’s value against a basket of six currencies, registers minuscule gains of 0.26% as the Asian session begins. The DXY exchanges hands at around 101.654 after hitting a daily low of 101.359.
Must read: US Dollar Index: Could a double bottom at the weekly chart drive the DXY to 111.000?
US Dollar Index Price Analysis: Technical outlook
The US Dollar continues to overextend nearby yearly lows, unable to drop to fresh year-to-date (YTD) lows, and capped on the upside by the 20-day Exponential Moving Average (EMA) at 101.728. The DXY is set to remain trading sideways, unable to break below/above the range.
Even though the double-bottom in the weekly chart remains in play, US Dollar bulls must reclaim the 20-day EMA, followed by the 102.000 mark. If that scenario plays out, the DXY will test the confluence of a six-month-old resistance trendline and the 50-day EMA at around 102.300-400. A decisive break could trigger an acceleration toward the 103.000 area, with the 100 and 200-day EMAs resting at 103.290 and 103.843, respectively.
Conversely, DXY’s first support would be the weekly low of 101.041. Support levels lie underneath the 101.000 figure, with the February 2 swing low of 100.820, followed by the year-to-date (YTD) low of 100.788.