The US Dollar Index continues to recover after completing the first intraday higher low in nearly 3 weeks. Buoyed by 4-hourly & daily bullish MACD divergence, the DXY's rally broke through the key 79.12 pivot and 3-month trendline resistance to probe the 20-day MA. A fresh higher low is now sought ideally by the 79.12 pivot for a test of the targeted 50-day moving average. This also coincides with a 50% retracement level located near the psychological 80 handle, clearing which further validates the possible double bottom base that is currently being formed. Meanwhile, the EUR/USD broke below 3-month trendline support and is currently probing the 50-day MA at 1.4033. A sustained loss of the 50-day MA suggests weakness towards the 1.38 handle.
The stop-loss has been trailed to cost.
