US dollar index (DXY) bounces of the 200 day MA yesterday.

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DXY is bouncing off a bunch of support

Yesterday, the dollar index (DXY) moved to a low of 105.321. The 200 day moving average was at 105.374. The short dipped below that moving average level was quickly bought. Also near the level is the 38.2% retracement of the move up from the May 25, 2021 low. That level comes in at 105.135. Finally, the price also tested the swing low from November 15 at 105.34.

So that set of support attracted dip buyers against the area (with stops on a break below).

The current price is reserve at 106.72. The high price today and reached 106.80 so far.

Technically speaking, holding those levels keeps the buyers in play and probably more in control from a longer term perspective. However, that picture could change in a moment on a move below that cluster support starting with the 200-day moving average and ending with the breach of the 38.2% retracement.

Consider that area going forward. It is a key area for all traders.

Source

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