Monday, February 24, 2020
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Technical Analysis – Dollar futures scope for further losses

Dollar Index futures scope for further losses but short-term downside softer.

The position in the US dollar index futures is on the back foot for the fourth consecutive day and near a three-month low of 95.47 following the rejection from the 20- and the 50-day simple moving averages (SMA).

The price has so far fallen below the 200-day SMA, the previous low of 96 and the 50% Fibonacci of the 93.56-98.23 up-leg, putting the January upward pattern into question.

In the short-term, downside pressure may persist but potentially at a softer pace given that Stochastics and the RSI are entering the oversold territory.

Should the market fail to clear the 95.80-96.00 area, bearish pressure may intensify, sending the price towards the 61.8% Fibonacci of 95.22. In case of a sharper decline, the 94.90 level could provide support as well, as it did in January.

A closing price above the 96 number would bring the 200-day SMA and the 38.2% Fibonacci of 96.37 into view. Nevertheless, a rally above the 50-day SMA currently at 97.18 may likely prove more valuable to the market.

In the three-month picture, the dollar index is in a range, fluctuating between 98.23 and 95.14.


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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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