US Dollar Index Price Analysis: DXY prints falling wedge bullish pattern
- DXY remains pressured after two-week downtrend, flirts with resistance line of bullish chart pattern.
- Sluggish momentum challenges the up-moves but 200-SMA, monthly horizontal support keep buyers hopeful.
US Dollar Index (DXY) extends Friday’s weakness, also the two-week south-run, while taking the bids around 93.61 during Monday’s Asian session.
The greenback gauge dropped to the three-week low on Thursday before bouncing off one-month-old horizontal support. Also challenging the DXY weakness is the 200-SMA and sluggish Momentum line ever since the quote reversed from the yearly top during mid-October.
It’s worth observing that the US Dollar Index portrays a short-term falling wedge bullish chart pattern, on the four-hour play.
Hence, confirmation of the stated wedge, with an upside break of 93.70 will theoretically hint at a fresh north-run towards the monthly high, also the yearly peak surrounding 94.55. During the run-up, the 94.00 threshold may offer an intermediate halt.
Alternatively, 200-SMA and the stated monthly support restrict short-term DXY declines around 93.55-50.
Following that, the wedge’s support line, close to 93.40, acts as an extra filter to the south before dragging the quote towards 61.8% Fibonacci retracement of September-October upside, at 92.94 by the press time.
DXY: Four-hour chart
Trend: Recovery expected