The Dollar Index rose 0.30% on Monday, reaching $105.517. Despite this uptick, the technical outlook remains bearish below the immediate resistance level of $105.816. A decisive move above this level could signal a shift in momentum, potentially pushing the index towards $106.004 and $106.189.
However, if the index fails to break through this resistance, it could retreat towards the pivot point at $105.433 and potentially further down to $105.216 and $105.031.
The 50-day EMA currently sits below the 200-day EMA, suggesting a potential bearish crossover. Traders should closely monitor the $105.816 level for a breakout or breakdown.
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.