Falling Corner Confirmation Favor DXY Bulls Above 96.00

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  • The US dollar index parries the biggest daily jump in two weeks.
  • Bullish chart pattern confirmed, firmer MACD signals favor buyers
  • 200-SMA, six week resistance line guard on the upside immediate.
  • The horizontal zone of November 18 is added to the downward filter.

The US Dollar Index (DXY) hovers around 96.17, down 0.05% during the day Tuesday morning after rising the most in two weeks the day before.

The sharp rise in the greenback’s gauge on Monday broke through a two week old resistance line, which in turn confirmed a bullish descending wedge chart pattern. MACD bullish signals add to the bullish bias.

However, a convergence of the 200-SMA and the 23.6% Fibonacci retracement (Fibo.) Of the November rise, near 96.20, limits the immediate rise in the quote.

Next, a declining November 24 resistance line near 96.55 will be the key to watch for DXY bulls.

Meanwhile, pullbacks may target the previous resistance line, part of the corner, near 96.00, a breakout of which will point bears towards 38.2% Fibo. level close to 95.77.

It should be noted, however, that a horizontal area surrounding 95.50-55, including the support line of the wedge and several lows marked since late November, appears to be a difficult nut to crack for the bears in the dollar index. American.

DXY: four hour graph

Trend: further rise expected

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