US DOLLAR INDEX (DXY) TECHNICAL ANALYSIS

DXY on the weekly time frame and still within a downward pointing channel.

Price have been forming an ascending triangle pattern since late January this year. It is now trying to push higher and we can see that dynamic resistance in the form of 30 ema is not too far away.

We might see more bullish action in the greenback once it closes above the 30 ema.

MACD histogram is below the zero line but has turned green indicating the building up of bullish momentum. Also do take note of bullish divergence in the histogram which is telling us that there may be more gas in the up move in the greenback which may take us back up to 92.0 or higher.

CONCLUSION

We are NEUTRAL on the DXY at the moment. We are observing for more bullish momentum and signs that the greenback has bottomed before we may want to have a bias on this currency.

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Ardy Ismail

Lead Currency Strategist / Team Forexachievers