US Dollar Index (DXY) is hovering around 100.48 as it has fallen below both the 50-EMA (at 100.90) and 100-EMA (at 100.86), giving short-term sellers the upper hand. A few sharp red candlesticks sent the index below the descending trendline and the Fibonacci support levels, and it is currently hovering above the 0 level at 100.35. Resistance is at 100.61, then 100.77 and 100.89.
RSI at 38 reflects weakening momentum, which means the pair is in oversold territory, indicating that downside pressures are strong although short-term consolidation could take place. With this in mind, I would avoid any trades until an apparent recovery to the upside of 100.61 is seen, where I would anticipate a trade around 100.89, although the downside of 100.35 remains a threat.
GBP/USD Technical Analysis: Can Bulls Extend the Breakout Toward $1.3560?
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