Dollar Index Price Analysis: Rises above 93.00, charts suggest seller exhaustion
- The dollar index has recovered to 93.00 on the Fed's skepticism of yield curve control.
- Daily and weekly charts show signs of seller exhaustion.
Dollar index, which tracks the value of the greenback against majors, is trading above 93.00 at press time, having put in a low of 92.13 earlier this week.
The bounce validates the seller exhaustion signaled by the higher lows (positive divergence) created by the relative strength index. The long tail attached to the weekly candle also indicates downtrend exhaustion.
As such, the index may challenge the lower high of 93.91 created on Aug. 12 in the short-term. That said, the broader trend would remain bearish as long as the former support-turned-hurdle of 94.65 (March low) is intact.
Daily chart
Trend: Corrective bounce
Technical levels
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