Dollar bulls' resolve called into question once again
Bears looking for a break below the 100-day MA in the dollar index
As highlighted yesterday, the greenback's hold on Friday isn't suggestive that things are looking up for the dollar just yet. The inability to break above 95.00 and hold above the 100-hour MA was enough to keep the near-term bearish bias intact and today we're seeing price move back below the 100-day MA (red line).
This is a key test for dollar bulls' momentum as we haven't been in this spot since April when price broke above the 100-day MA. With buyers showing signs of exhaustion, a firm break below the 100-day MA may just be enough to get the ball rolling for further retracement in the dollar's gains this year.
It's still a bit early in the day to call this a break to the downside and to signify the end of the dollar's bullish run over the past five months or so. But this is a chart that you have to be watching in the sessions to come.