The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, extended its decline on Thursday, sliding near 106.30. The decline followed US President Donald Trump's announcement of potential progress on a trade deal with China, which offered markets a temporary reprieve from tariff concerns. Despite the relief, weak US jobless claims data and mixed Federal Reserve (Fed) comments kept traders cautious.
The US Dollar Index remains under pressure after falling below 106.50, with bearish momentum gaining strength. The index is struggling to reclaim its 20-day Simple Moving Average (SMA), which is signaling continued weakness. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) remain in negative territory, indicating continued downward pressure. A sharp drop below the 100-day SMA at 106.30 could signal a further bearish breakout, with 106.00 emerging as the next significant support level. Bulls need to reclaim the 107.50 resistance zone to turn the momentum in their favor. (Newsmaker23)
Source: FXstreet
