A few significant resistance indications are being approached by the US dollar index.
Will this cause DXY to continue its downward trend until 2023? Let me give you an overview of what's happening each day:
If you've been following the U.S. dollar index, you'll be aware that since it arrived there last week, DXY has been consolidating at the 103.50 level.
Why not, then? On the daily time frame, 103.50 is not only close to the R1 Pivot Point level but also to the 200 SMA of the chart.
Moreover, the top of a declining channel that has been stable since late December coincides with DXY's present levels.
Will the American dollar suffer further losses?
It certainly is a possibility, particularly if DXY is rejected from its current levels.
A fall below the 102.80 or 102.00 areas of interest should be watched closely as it could lead to downturns that could extend to the 100.00 psychological threshold.
Of course, you may also wager on an upside breakthrough if you'd prefer to keep buying the dollar.
If there is persistent buying pressure over the 104.00 prior high, for example, a long trade above the channel and the R1 resistance zone might be successful.
How do you feel? Can DXY continue its downward trend from 2023 in the upcoming days?
