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Dollar index recovers some losses
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Death cross posted by 20- and 200-day SMAs
The US dollar index breached the tough 102.35 level to the downside with strong momentum and has remained below it for three consecutive days.
Technically, the price is sailing near oversold waters according to the technical oscillators. The RSI is also flagging a potential downfall as it’s losing impetus in negative area, while the MACD is still extending its negative momentum beneath its trigger and zero lines.
If buyers take control and jump above the crucial 102.35 resistance, the door will open for the death cross within the 20- and the 200-day simple moving averages (SMAs) at 103.20. Running higher, the index will have to face the 103.90 barrier.
Should the bears press the price below 101.35, they may prevent an aggressive downfall towards the 100.27 support. If the latter gives way too, the decline could continue towards the 99.20 barrier, continuing the selling interest from the eleven-month top of 107.00.
In a nutshell, despite the latest rebound in dollar index, there are some obstacles to consider before a real bullish trend reversal takes place. The SMAs is currently in target ahead of 104.70.
