DXY Chart Technical Outlook

DXY Chart Technical Outlook is heading lower, with key support at 105.70 under pressure

DXY rally from July lows seems to have stalled with the dovish comments from Fed officials, dialing down hopes of further Fed hikes and adding selling pressure on the USD.

The minutes of the last FOMC meeting, due on Wednesday and US CPI figures are likely to have a significant impact on Dollar crosses. Beyond that, the escalating violence in the Middle East might revive risk aversion which will buoy the safe-haven Greenback.

Technical indicators have turned lower with price action closing below the 4h 50 and 100 SMAs. The index is now testing an important support level at 105.75.

Below here, bearish momentum will increase, with next targets at 105.35 and 104.55.

Resistances are at the mentioned 50 SMA, now around 106.50 and 107.00.

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