The US dollar index (DXY), which measures the greenback’s strength against a basket of six major currencies, reversed sharply to the downside on Wednesday and followed through to the downside on Thursday. In today’s trading, the dollar is bouncing back modestly, currently holding near 100.69, up 0.18% over Thursday’s close.
The dollar has stabilized upon reaching the converging 20 and 100-day moving averages. However, the ability to hold this level appears questionable. On a drop below, the target becomes the February low at 99.23, which represents a test of the low that was established December 8 at 99.43.
On the upside, a move above the high of the shooting star established in Wednesday’s trading, at 101.76, is required to improve the outlook for the dollar on an intermediate-term basis. At present, such a development does not appear likely.
Today’s US economic calendar is light, with just leading indicators being released at 10:00 ET.
U.S. Dollar Index Daily Chart