US Dollar Index Technical Analysis: Second times the charm
The US Dollar Index (DXY) is heading back towards 103.00 for a second attempt after it failed to stay above it earlier this week during the Consumer Price Index (CPI) release on Tuesday. Seeing that external factors this Thursday have brought the Greenback back to this area makes it rather questionable if the data release this afternoon will be enough for the DXY to breach the 103-barrier. Overall it looks that traders are keeping most of their powder dry ahead of the US Federal Reserve rate decision next week.
On the upside, the first reclaiming ground is at 103.38, the 55-day SMA. Not far above, a double barrier is set to hit with the 100-day SMA near 103.68 and the 200-day SMA near 103.70. Depending on the catalyst that pushes the DXY upwards, 104.96 remains the key level on the topside.
The DXY was unable to even test or challenge the 55-day SMA after the CPI print. More downside looks inevitable with 102.00 up next, which bears some pivotal relevance. Once through there, the road is open for another leg lower to 100.61, the low of 2023
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