In our last post, Keeping an Eye on the US Dollar Index from October 23rd, 2022, we noticed the US Dollar index (DXY, DX-Y.NYB) was heading down towards its long time support lines.
We stated that “Macroeconomics and political dynamics may start pressuring the index down,” however, we could not tell how the expected encounter with the over-16-months support lines would end.
Well, now everyone knows. After nearly 17 months, the index stopped respecting its body and wick support lines, which registered in June 2021.
It began with a decline that was stopped by the respected 92-day SMA body support line on November 8th. The following day saw the index bounce off that support line, in what seemed to be yet another local low.
November 10th was the day that the index crossed below both the body and the week support lines. That was a first after nearly 17 months, and it was violent. There was no doubt nor hesitation there.
November 11th was as violent and acted as a confirmation to the move.
Here is the US Dollar index (DXY, DX-Y.NYB) chart, overlaid by the body and wick support lines:
Zooming in:
Ultra zoom in:
