DXY is back below the short-term tentative downside resistance line. We suggest not to focus too much on it, as it could easily get violated again. That said, it is still worth keeping an eye on it.
For now, we will continue looking south, at least towards the 95.46 area, which could act as a bouncing ground. But, of course, if it gets broken, then further declines are expected.
In order to consider the upside again, we would need to see the index pushing above, not only the aforementioned downside line, but also the 95.92 barrier. This way, DXY could clear the path for itself towards higher levels.
Please see the chart for details.
For now, we will continue looking south, at least towards the 95.46 area, which could act as a bouncing ground. But, of course, if it gets broken, then further declines are expected.
In order to consider the upside again, we would need to see the index pushing above, not only the aforementioned downside line, but also the 95.92 barrier. This way, DXY could clear the path for itself towards higher levels.
Please see the chart for details.