When the coronavirus first began to spread throughout the world, the US Dollar Index (DXY) began to trade violently. First it traded down to 94.50 as the Fed began throwing money at everyone on the street to help with the economic effects from the pandemic. In addition, people feared a slowdown in the US. The DXY then traded higher to 102.99 as the Index became a flight to safety. It then pulled back to 50% of that move on March 27th, and has been trading in a well-defined, tight range between 98.27 and 100.93 for the last month.
It is currently forming a symmetrical triangle. Price had been holding above horizontal support at 99.62, and finally broke below yesterday. It has bounced back to resistance at 99.88. Above there, resistance is back at the day’s highs of 100.21 and then near the downward sloping trendline from the triangle near 100.45. Initial support is at the day’s lows of 99.45 and then near the upward sloping trendline from the triangle near 99.35.
US Dollar Index - 240 Min Chart
Source
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