The DXY bounced from the support area of 101.50 to trade up to the resistance level of 102 which is a round number and the 38.2% fib retracement level.
This move higher, despite the negative news overnight from the ADP employment change and the services PMI data signals the possibility of a short term technical rebound rather than a deeper correction to the upside.
If the price fails to break above 102, the DXY could resume the previous downtrend to trade lower to retest the 101.50 support level again.
Alternatively, if the DXY breaks above 102, price could climb to the 102.40 price level which coincides with the 61.8% fib level and the resistance of the downward trendline.
This move higher, despite the negative news overnight from the ADP employment change and the services PMI data signals the possibility of a short term technical rebound rather than a deeper correction to the upside.
If the price fails to break above 102, the DXY could resume the previous downtrend to trade lower to retest the 101.50 support level again.
Alternatively, if the DXY breaks above 102, price could climb to the 102.40 price level which coincides with the 61.8% fib level and the resistance of the downward trendline.
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