As we all know, US Dollar has been hit by the bear quite badly, and the situation didn't even get better, at least until end of January. If we take a look from daily chart, DXY managed to find some support early of February at ~88.65 level and since then it has been correcting for around 2%. Previous support was around 90.25, which is now turned to be resistance, and it is also acting as the 23.6% fibonacci retracement.
Since last Wednesday, DXY has been hovering 90.20 - 90.37 area which indicates some uncertainty on the next direction. Although overall trend for DXY still looks bearish, price is currently playing around short term EMA(21), so any close below ~89.95 will be treated as bearish continuation.
Anticipation
If DXY could retest 91 level this week, then a bullish reversal may be inevitable, with 90.20 area would be the next support. However, if 90.20 failed to support the price level, then bearish continuation will be coming to play. It is interesting to see what will be coming next week.
Stay safe trader!
Since last Wednesday, DXY has been hovering 90.20 - 90.37 area which indicates some uncertainty on the next direction. Although overall trend for DXY still looks bearish, price is currently playing around short term EMA(21), so any close below ~89.95 will be treated as bearish continuation.
Anticipation
If DXY could retest 91 level this week, then a bullish reversal may be inevitable, with 90.20 area would be the next support. However, if 90.20 failed to support the price level, then bearish continuation will be coming to play. It is interesting to see what will be coming next week.
Stay safe trader!