- DXY refreshes multi-month low.
- One-month-old falling channel line’s support area might help the bulls.
- Bears helped by 21-day EMA and channel’s resistance line.
The US dollar index was trading around 91.77 in early trading today, the lowest level since May 2018. The bears haven’t shown any diffidence even as the RSI is flashing overbought signals.
A falling trend channel since July 31 has the support area around 91.74, and the bulls might initiate positions from here. Traders have to bear in mind that the MACD is with the bears, and might push DXY to September 2017 bottom close to 91.00 if a fall below 91.74 materializes now.
The August 06 low near 92.50 could attract some short-term buying, but the 21-day EMA level of 93.06 and the channel resistance line around 93.15 could stop the bulls from gaining additional strength.
The bulls might try to push the pair towards the previous month’s high near 93.90 if DXY moves past 93.15 on a closing basis.