Can USD Bears Drive Prices Lower?

Back in May of this year analysts predicted that the US Dollar Index ( DXY ) which measures the value of the US Dollar compared to a basket of other currencies would most likely decline over the coming months as we head towards the US election in November. The decline of the US Dollar since the March highs of this year has been relentless, breaking through numerous key support levels. The US Dollar now finds itself retesting the March lows (1 & 2), how this currency index behaves at this critical support zone could provide us with some insight as to whether the bottom is in or not. A break below this support zone will most likely lead to increased selling pressure, driving prices down to the September 2018 lows (9336.8) over the coming days/ weeks.

If the US Dollar stands any chance of recovery at these lower levels, it will need to respect this current support zone and clear the 9600/ 40 handle to give it a fighting chance. Above 9780s hands the reins back over to the bulls.