DXY is looking for a direction.As shown in the charts, the price trend records a downward movement, using the entire range of the trend channel, but is unable to break the resistance level at 92.50. Applying the Fibonacci Retracement tool, it seems that the specific resistance level at which the upward trend of the last period was stopped coincides with the critical price level of 61.8FR. This makes it particularly important in determining the course of the DXY. Moreover, there are two more critical resistance levels at 94.60 and 96.00.
The averages as well as the MACD, on the other hand, seem to give a positive outlook on DXY's effort to move upwards. At present, of course, these observations are too early and are not sufficient to definitively substantiate the beginning of an uptrend. Clearly much more momentum is needed from the MACD as well as the averages that record the uptrend to get the right position.
Looking at the data from the Bollinger Bands, it seems that the index reacts more than ever to the upward movement of the DXY, as the outer bands are in a relative deviation. Without this of course creating perfectly for its course because it may have been caused by the movement of prices outside the upper band. Finally, the data analyzed by the Bulls / Bears seem to lead to the accumulation of a dynamic on the part of buyers which is still subdued.
Summarizing all the above, it seems that DXY is trying to find an uptrend which now cannot be confirmed 100%. The criticality of the price level 92.50 is obvious. A possible upward break in this resistance level may lead DXY to what it has been trying lately, a rise in prices. On the other hand, if prices move lower in the coming days, it means that buyers are not yet ready to take the risk and drive the dollar higher.
