Forex News

03:40:58 03-12-2021

US Dollar Index Price Analysis: DXY bulls keep reins above 96.00, US NFP in focus

  • DXY prints three-day uptrend towards 10-DMA immediate resistance.
  • Weekly falling trend line, 2021 peak also probes buyers before 61.8% FE level.
  • 20-DMA, five-week-old support line adds to the downside filters.
  • Sustained trading above key supports, firmer RSI favor buyers.

US Dollar Index (DXY) holds onto the three-day recovery moves, up 0.06% around 96.18 during early Friday.

In doing so, the greenback gauge stays above the 20-DMA and an ascending support line from October 29 amid a firmer RSI line, not overbought, which in turn suggests the quote’s further advances.

However, the 10-DMA level of 96.30 precedes a weekly resistance line near $96.45, to restrict the immediate upside of the DXY.

Should the quote manage to cross the 96.45 hurdle on a daily closing basis, the latest run-up can challenge the yearly peak of 96.94 with eyes on the 61.8% Fibonacci Expansion (FE) of November’s moves, around 97.55.

Meanwhile, pullback moves remain less worrisome until staying beyond 20-DMA and the aforementioned support line, respectively around 95.75 and 95.30.

It’s worth noting that the US Dollar Index becomes vulnerable to visit 94.60 level, surrounding early November’s top, on the break of 95.30 support line.

Read: Nonfarm Payrolls Preview: Jobs’ headline could be a make it or break it in tapering’s decision

DXY: Daily chart

Trend: Further upside expected


News provided by the portal FXStreet