It is holiday party season, with trading signals that may not be as reliable as some regular week during the year. But the US dollar index is still the main anti-market to the world of assets and it has logically been dropping as assets have partied.
But a look at the daily chart shows an oversold situation at a support area, with DXY putting in a little hammer candle so far this morning.
The support touch points on the chart above are all from the upside, which does not indicate firm support. But stretching it out to a longer-term view the green arrows show clear touch points from below in 2020. Considering the oversold state of RSI it would be best to be prepared for a bounce in USD, which could temporarily upset asset markets. As for a bounce objective, resistance at 102.50 looks like a reasonable level.
