The US Dollar Index pushed back above the 50-Day SMA (103.76) during the previous week to clear the opening range for March, and DXY may attempt to retrace the decline from the February high (104.98) if it clears the monthly high (104.50).
DXY Outlook
DXY may track the positive slope in the moving average as it pares the decline from the start of the week, with a breach above the February high (104.98) raising the scope for a test of the 105.00 (23.6% Fibonacci extension) figure.
Next area of interest comes in around 105.50 (23.5% Fibonacci retracement) to 105.80 (61.8% Fibonacci extension) but failure to test the February high (104.98) may keep DXY within a defined range.
Lack of momentum to hold above 104.40 (38.2% Fibonacci retracement) may push DXY below the moving average, with a break/close below the 103.30 (50% Fibonacci extension) to 103.50 (50% Fibonacci retracement) region bringing 102.60 (61.8% Fibonacci retracement) on the radar.
--- Written by David Song, Strategist
DXY Outlook
DXY may track the positive slope in the moving average as it pares the decline from the start of the week, with a breach above the February high (104.98) raising the scope for a test of the 105.00 (23.6% Fibonacci extension) figure.
Next area of interest comes in around 105.50 (23.5% Fibonacci retracement) to 105.80 (61.8% Fibonacci extension) but failure to test the February high (104.98) may keep DXY within a defined range.
Lack of momentum to hold above 104.40 (38.2% Fibonacci retracement) may push DXY below the moving average, with a break/close below the 103.30 (50% Fibonacci extension) to 103.50 (50% Fibonacci retracement) region bringing 102.60 (61.8% Fibonacci retracement) on the radar.
--- Written by David Song, Strategist