Downside move today sees the 200-hour MA in DXY challenged once again
As was the case in yesterday's trading, but dollar bulls barely held on to the 200-hour MA (blue line) yesterday. And sellers are knocking on the door once again in trading today.
Move below, and near-term bias turns more bearish - which points to further loss in the dollar's upside momentum. This will be a key level to eye in the near-term.
Looking at the daily chart, it's not looking too pretty either after the rejection at the resistance area pointed out:
It's a straightforward technical play in the dollar index from what I can see and if the near-term momentum breaks, then sellers will be eyeing a move towards the 94.17 level first before the 23.6 retracement level @ 93.81 comes into play again.
The key risk for the dollar itself today will come from Powell's testimony. But knowing how the Fed plays its cards, Powell is expected to very much just provide a reiteration of the Fed's June meeting and nothing more.
Consider that as the base case, the dollar's near-term direction now hinges on that hold or break of the 200-hour MA.
