Dollar bears start to rear their heads, for the near-term at least

Technical Analysis

Author: Justin Low | usd

Dollar index breaks below the 100-hour MA

The near-term bullish bias appears to be broken as sellers start to come back into the picture. Two previous attempts to move below the 100-hour MA (red line) failed but it looks like third time's the charm for dollar bears.

The key now is to sustain a hold below it, and that will build the platform for further dollar weakness in the near-term. The next key level to eye for a break lower will be yesterday's low @ 96.32.

Ultimately, the 200-hour MA (blue line) will be the major level as only a break of said level will we see an extension of any momentum to the downside for the dollar. Otherwise, the moves here remain very much a retracement after bulls failed to break the 97.00 level.

In the big picture:

The bullish momentum remains very much intact but resistance at 97.00 and daily resistance at 96.80 will now be a tough area to break above in the near-term.

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