USD Index Surges, Could Retake 91.00 If Momentum Continues

The US Dollar was a big winner on the day as it gained broadly across several currency pairs. The USD Index showcases the rise of the greenback against the Swiss Franc, the Euro and Japanese Yen on the day. 

The index that tracks the performance of the greenback against a basket of currencies saw demand early in the session and never looked back, notching up gains of 0.36% on the day. The USD Index could make an attempt at retaking 91.00, where weekly tops of 21 December and 18 January are seen. 

Technical Levels to Watch

Today’s 0.36% surge in the US Dollar Index has brought it into opposition with the resistance at 90.965. The price picture on the daily chart resembles an ascending triangle, which in this case could function as a bottoming pattern. 

A break above the triangle’s upper border at the current resistance could allow the DXY to aim for a measured move towards 92.50 (31 August and 24 November 2020). However, this move has to take out the 91.906 resistance along the way. 

On the flip side, rejection at the current resistance and subsequent breakdown of the ascending trendline that forms the triangle’s lower border could trigger a selloff towards the 17 December lows at 89.750, with additional downside targets beckoning at 89.189 and 88.297 respectively. 

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USD Index Daily Chart

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