Technical Analysis – US dollar index meets another 14-month low
- US dollar index remains bearish below 20-day SMA
- Stochastic and RSI in negative territories
The US dollar index dived to another fresh 14-month low of 99.84 on Friday, continuing to hold beneath the short-term 20-day simple moving average (SMA). The downside pressure is also confirmed by the technical oscillators. The stochastic is pointing down near the 20 level, while the RSI is decreasing beneath the neutral threshold of 50.
In case of a daily close below the 99.84 support could open the door for a test of the 99.25 trough taken from the lows in July 2023. Steeper declines may send the market until 97.70, achieved in March 2022.
Alternatively, a successful climb above the 20-day SMA could find immediate resistance near the 101.15 barrier before challenging the 50-day SMA at 101.75, which coincides with the near-term diagonal line. Slightly higher, the 101.90 bar may halt bullish actions.
All in all, the dollar index has been in a bearish mode since the end of June and only a run above the 200-day SMA at 103.47 could switch the outlook to positive.
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