USD Index Outlook: Dollar Index Hits New 2020 Low

Technical analysis of Forex market

Pressure on dollar is rising as bears eventually cracked key short-term support at 94.59 (2020 low, posted on 9 March). Steep fall of past six days points to bearish acceleration, as the index is heading towards sixth consecutive week in red (weekly fall is so far 1.4%) and also on track for the third straight monthly fall. Weekly close below $94.59 would generate strong bearish signal for extension towards next strong support at 94.12 (Fibo 61.8% of 2018/2020 88.14/103.80 ascend). Bearish studies on larger timeframes add to negative environment for dollar, with oversold conditions being so far ignored but some corrective actions could be anticipated in coming sessions.

Res: 94.76; 95.01; 95.36; 95.59
Sup: 94.59; 94.12; 93.85; 93.50

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