This tweet from July 18th, 2022, showed the best respected moving average support lines for the US Dollar index (DXY, DX-Y.NYB) while it was flying high:
The 92-day SMA (body) and the 104-day SMA (wick) support lines were identified as the best support lines.
DXY kept respecting these support lines for a few good months.
While keeping Twitter readers more frequently informed, we started posting about DXY in these pages as well, including on November 12th, when the index crossed below these strongly holding support lines.
The year ended with the US Dollar index well below the broken support lines.
Revisiting the US Dollar index chart today reveals an amazing image: The 104-day SMA is still best respected – however, this time as the resistance line. We witness a classic “support becomes resistance” case.
Here is the DXY chart, overlaid with its ex-best respected moving average support lines:
The proximity of the index’s local high to the resistance line is spectacular:
If you haven’t already done so – we recommend taking note of this SMA in the life of the US Dollar index.