Breaking the weekly descending trendline, trading above 50-SMA signals bullish MACD signals in favor of bulls.
100 SMA adds to the down side filters. 61.8% FE level lures buyers.
The US Dollar Index (DXY), which reported a five week uptrend to poke May 2020’s highs, begins the current week on the back foot. Sellers attack the 99.00 level Monday’s Asian session.
The greenback gauge still holds on to the upside break of the trend line that was descending from March 07, which keeps buyers hopeful.
The bullish MACD signals are also included and continue trading above the 50-SMA.
The latest pullback is still elusive, until breaking the previous resistance line (near 98.85 at press time).
The 50-SMA and recent lows (near 98.40, 97.70) may then test the US Dollar Index bears. They will then be directed to the 100-SMA level around 97.40.
Further upside will be aimed at the multi-month high of 99.41, ahead of the 61.8% Fibonacci Extension (FE) of February and March moves, which surround the 100.00 psychological magnet.
Multiple tops around 100.50-55 in early 2020 will be of interest to DXY bulls if they dominate above 100.00.
