On Friday, the DXY traded lower to end the week along the 104.50 price level. With no major news release, this move lower was somewhat unexpected but could be attributed to a technical retracement as the price failed to break above the 105-round number resistance level.
Today, with no major news release for the US, the downward move is likely to continue. However, as the price is consolidating along the 104.50 price level, a signal and confirmation of the downward move would be if the DXY breaks below the support level of 104.40.
If the support level is broken, the next key support level is at the round number level of 104.
The downside for the DXY could be brief, with the possibility that the DXY could quickly rebound or break out from the current consolidation to retest the recent high of 105 and 105.35.
Today, with no major news release for the US, the downward move is likely to continue. However, as the price is consolidating along the 104.50 price level, a signal and confirmation of the downward move would be if the DXY breaks below the support level of 104.40.
If the support level is broken, the next key support level is at the round number level of 104.
The downside for the DXY could be brief, with the possibility that the DXY could quickly rebound or break out from the current consolidation to retest the recent high of 105 and 105.35.
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