The US dollar is very far from its monthly lows!
Is now the time for the bears to rain on the bulls parade?
Or could the dollar maintain its momentum and reach higher areas of interest?
US Dollar Index (DXY) DailyForex Planned by TV
As you can see, the US Dollar Index (DXY) is trading above the psychological 102.00 level after weeks of stumbling near the lows of 101.20 in April.
Can the dollar bulls sustain their momentum?
It will be challenging with the 100 SMA already testing the dollar buy demand.
It also doesn’t help that DXY is already approaching the mid-range area of 103.40 while the stochastic is showing an ‘overbought’ signal on the daily time frame.
Bulls who are confident in the dollar’s ability to break down through the 100 SMA and medium term resistance can take advantage of the current momentum and aim for areas of interest such as 103.60 or 104.40.
Do you feel that the dollar is due for some losses?
Watch for rejection at 100 SMA and 103.50 which opens the index for a trip back to 102.20 or even the previous 101.20.
Whatever bias you end up trading, make sure you follow your trading plan and use the best risk management moves so you can trade for another day!