- Sell off in US Dollar Index (DXY) steadies
- Symmetrical triangle breakdown on 1H chart.
- Bearish crossover and RSI indicate more downside.
The US dollar index (DXY) trades at multi-day lows near 90.60, owing to covid vaccine developments and slow progress surrounding US fiscal stimulus talks.
Looking ahead US PPI and Consumer Sentiment in focus, particularly after Thursday’s disappointing Jobless Claims report.
The near-term technical perspective shows risks remain skewed to the downside, with DXY following the symmetrical triangle breakdown.
The bearish crossover on H1 chart supports the case for additional downside. The 21-hourly moving average (HMA) dropped below the 50 and 100-HMAs.
The Relative Strength Index (RSI) points south at 35.13, above oversold territory, indicating there is more scope for falls.
Bears eye December 4 low of 90.47 before 89.97.
On the flip side, any recovery attempts see 90.75, the triangle support now resistance tested prior to the21-HMA resistance at 90.8.