- US dollar index fails to extend upside move from 100.27
- 200-day SMA acts as important resistance
- RSI weakens above 50
The US dollar index is currently struggling to surpass the significant 200-day simple moving average (SMA), which stands near the 103.20 barrier. The market is moving back and forth of the 50- and the 200-day SMAs after the rebound off the 100.27 support level.
The RSI is above its 50 neutral mark, although weaker, and the MACD is keeping its footing above its trigger line and near the positive area, both reflecting that buyers are still active.
If buyers stay in play, the door will open for the 103.40 resistance and the 103.90 mark. Running higher, the index will have to face the inside swing low of 104.70, registered back in November.
Should the bears push the price below 102.80, the 20-day SMA at 101.90 may prevent a downfall towards the 101.60 support. If the latter gives way too, the decline could continue towards the 100.27 bottom, achieved on December 28.
In a nutshell, despite the latest exciting rebound in dollar index, there are some obstacles to consider before a real bullish trend reversal takes place.
