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Technical Analysis – US Dollar tries to hit a 23-month peak

US Dollar Index tries to hit a 23-month peak; remains bullish in the medium term.

The US dollar index is still rising above the 50-day moving average, edging towards the 23-month high of 98.05 achieved on April 25. However, the short-term bias is tilted to the downside as the RSI indicator is turning marginally lower in the positive region, while the stochastic oscillator posted a bearish crossover within the %K and %D lines in the overbought territory, indicating an overreached rally.

If the price posts a bearish retracement as the momentum oscillators signal, support is coming at the 96.85 level, which stands near the 50-day SMA. More losses could challenge the uptrend line, which overlaps with the 200-day SMA, currently at 96.10.

Alternatively, if the index moves higher, the 23-month high of 98.05 could attract traders’ attention once again and any violation above this hurdle could open the way for the 98.70 resistance, posting a higher high in the long term.

In the bigger picture, the dollar index has held in an upside tendency, however, looking at the very short-term, the price is trying to post a higher high confirming the ascending profile.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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