US Dollar Index Price Analysis: Upside capped around 94.30

  • DXY meets a tough barrier in the 94.20/30 band so far.
  • Attention re-shifted to the downside and to 93.30.

DXY comes under some selling pressure after testing the area of 94.20/30, where converge a Fibo level and the 100-day SMA.

The extension and duration of the corrective downside largely depends on the outcome of the US elections. That said, the 55-day SMA at 93.32 should offer initial contention ahead of the 6-month (now support) line in the 93.00 neighbourhood.

While below the 200-day SMA, today at 96.58, the negative view on the dollar is expected to persist.

DXY daily chart

 

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