On the daily chart, the Relative Strength Index (RSI) exhibits a negative slope residing in negative territory, an indication that selling pressure outweighs buying momentum in the market. Concurrently, the Moving Average Convergence Divergence (MACD) signals a bearish outlook as well. The red bars are lengthening on the histogram, implying rising selling momentum. This highlights an amplified bearish force, contributing to the weakening of the pair.
However, the positioning of the Simple Moving Averages (SMAs) paints a more nuanced picture. Despite the Index now trading below the 20-day and 100-day SMAs, which supports the bearish sentiment, it's still above the 200-day SMA. This upward breach can be interpreted as a demonstration of robust resilience by the bulls in the larger context, hinting that buyers are fighting to regain control. That being said, credit should be granted to bears, who managed to breach the key 20-day average, which recently acted as a key support.
This suggests that, for now, the selling force is dominant over the buying momentum, but if the buyers defend the 200-day SMA, the overall positive bias will remain intact.
Technical analysis: DXY Index’s bearish movement dominates as sellers conquer key level
On the daily chart, the Relative Strength Index (RSI) exhibits a negative slope residing in negative territory, an indication that selling pressure outweighs buying momentum in the market. Concurrently, the Moving Average Convergence Divergence (MACD) signals a bearish outlook as well. The red bars are lengthening on the histogram, implying rising selling momentum. This highlights an amplified bearish force, contributing to the weakening of the pair.
However, the positioning of the Simple Moving Averages (SMAs) paints a more nuanced picture. Despite the Index now trading below the 20-day and 100-day SMAs, which supports the bearish sentiment, it's still above the 200-day SMA. This upward breach can be interpreted as a demonstration of robust resilience by the bulls in the larger context, hinting that buyers are fighting to regain control. That being said, credit should be granted to bears, who managed to breach the key 20-day average, which recently acted as a key support.
This suggests that, for now, the selling force is dominant over the buying momentum, but if the buyers defend the 200-day SMA, the overall positive bias will remain intact.
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