US Dollar Index Price Analysis: DXY bulls seek 94.00 breakout to tighten grips
- DXY keeps the bounce off 200-EMA inside weekly falling trend channel.
- 50-EMA, channel’s resistance line and previous support from early September challenge bulls.
US Dollar Index (DXY) holds onto recovery moves from the key moving average around 93.83, up 0.06% intraday, during Wednesday’s Asian session.
Although the RSI line backs the rebound, a convergence of 50-EMA, upper line of the short-term descending trend channel and support-turned-resistance from September 03, around the 94.00 threshold, will be a tough nut to crack for the DXY bulls.
In a case where the US Dollar Index crosses the 94.00 hurdle, the monthly ascending trend line near 94.60, will be in focus.
Meanwhile, pullback moves may aim for a 200-EMA level of 93.58 before targeting the support line of the stated channel, close to 93.40 by the press time.
Should the DXY bears defy the channel formation with a downside break of 93.40, the late September lows near the 93.00 mark may return to the charts.
Overall, US Dollar Index (DXY) remains bullish but the 94.00 level will be a tough nut to crack for the optimists.
DXY: Four-hour chart
Trend: Further upside expected