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US Dollar Index – Is a Rebound on the Horizon for DXY

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The US dollar index has been trading mixed over the past few sessions.

But price action suggests that we might get to see a short term rebound in prices.

On a weekly basis, the Dollar Index closed on a bearish note right after rising to a nine-week high last week. Overall, price action remains supported above the 89.82 level of support for the moment.

There is also a hidden bullish divergence that we see, as the Stochastics oscillator plots a lower low against the higher low in price.

If there is a rebound from this low, we might get to see the dollar breaking past the 91.23 level of resistance. A confirmed daily close above this level will open the way to the 92.23 level of resistance next.

The overall bias in the US dollar index remains to the downside, as long as price remains below the 92.23 – 92.52 resistance area.

A close above this level on a weekly basis will however change that view.

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