- The US Dollar Index (DXY) remains under heavy bearish pressure as this past month of October was the worst for DXY in 21 months.
- However, the bullish bias should remain in place while above the 97.00/97.60 support zone.
DXY weekly chart
The Index is ending near 97.16 and the 50 SMA on the weekly chart. DXY is trading in a bull channel and the market is trading in the lower range of the channel. There is strong support at the 97.00/96.70 support zone. However, if this level doesn’t hold DXY may drop to the 95.84 swing low, putting the bull trend at risk.
DXY daily chart
On the daily chart, the market is trading below its main SMAs, suggesting weakness. A drop to 97.00/96.70 seems likely given the lack of bullish commitment.
Next week, if buyers decide to come back, their first objective will be to break above the 98.00 handle followed by the 98.80 level.
Additional key levels