Flash Note: US Dollar Index (DXY)

Flash Note: US Dollar Index (DXY)

US Dollar Index (DXY)

  • Yesterday saw the price test (cross above) it’s 200-day simple moving average (marked 2 on chart).
  • This follows a cross below the 200-day simple moving average that saw a bear trend develop from May 2017 to February 2018.
  • Although the price is in an upward trend and the candle structure remains strong (large green candles), the price is nearing the underside (resistance) of a head and shoulder formation that developed from September to December 2017.
  • The RSI (daily chart) also shows the price the most overbought since December 2016, with a print of 73.
  • Key Resistance at 92.78 to 93.00. Support at 91.80.
  • Caution a current levels as the index is overbought while the first test of the 200sma is often accompanied with a retracement.

 

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