Here is some daily chart micromanagement of the short-term situation for USD (DXY). If USD were to rally from here it would imply headwinds against the broad asset market rallies. If it drops and/or breaks down, quite the opposite.
As a reminder, trend lines are less important than support/resistance and the all-important ‘higher/lower highs or higher/lower lows. This chart advises that the lower trendline of the short-term uptrend channel is breaking down this morning. It is not something to get over-excited about, but it is a technical negative, nonetheless.
USD is still well above the March 21st low (103.17) and currently tapping the moving averages and associated support. RSI and MACD look anything but stellar and a world full of traders may see this channel breakdown and push the selling of USD. If so, 103.17 is an important level to hold, followed by the March 8th low (102.35), below which the short-term view completely breaks down.
