describing what a strong dollar means
  • The US dollar index fails to move above 93.82.
  • Key technical indicators suggest bearishness in the index.
  • Sellers challenge an ascending support trendline.

The US dollar index was trading around 93.70, down by 0.11 Percent, reflecting its downward slide against a basket of currencies ahead of the European market open today.

The weakness is in contrast to the gains on Friday, which was recorded despite MACD histogram showing a bearish mood. The pair’s downside might be restricted by the merging of the 100-bar exponential moving average and an ascending trendline from September 21, around 93.70.

Even a fall below 93.70 wouldn’t put the bears in command unless the index falls below 93.47 – part of a five-week-old rising support line.

On the other hand, bulls will not be keen to join the up move unless 21-bar and 50-bar EMA are challenged above 93.87. After which, 94.00 mark and 94.20 – part of a horizontal line connecting September top, will be under bull attack.