The dollar index has rotated back to the downside

The DXY has seen an up and down day today after a run higher ran out of steam and pushed back lower. The price is near the close from yesterday. A move below 95.67 would be the 3rd down day in a row.

THe high for the week was on Monday when the index targeted the high from early February at 96.46. The high price reached 96.43, found sellers near the level (risk was limited for sellers), and rotated back to the downside.

The low yesterday and today has pushed the price closer to the 100 day MA. That MA currently comes in at 95.405 (and rising). The last four tests on the daily chart, saw some minor breaks below, but those breaks failed quickly with each day closing above the MA level.

Going forward more weakness would have traders looking toward that MA level. Move below with momentum, and the bias would shift more in favor of the sellers/DXY bears.

The DXY index is a trade weighted index with the biggest influence being the EUR. The Russia/Ukraine pushed the index higher on EURUSD weakness. However, on Monday the EURUSD started to rebound, sending the DXY lower. Today, the price action saw the EURUSD move lower (and the DXY higher), but the price has since seen a rotation back to the downside.