Dollar Index technical analysis: Close below 200-day MA could accelerate sell-off

• Dollar index risks deeper drop below 200-day MA. 
• That long-term average served as strong support in the last five months. 

Dollar Index (DXY) is currently trading just below the 200-day moving average (MA) at 96.56. 

The index has defended the long-term average on a daily close basis at least four times in the last five months. 

Therefore, the 200-day average is a key support. A daily close lower will likely invite stronger selling pressure, leading to a deeper drop to 95.74 (March low). 

On the higher side, 97.77 (June 18 high) is the level to beat for the bulls. A daily close above that level would invalidate bearish lower highs pattern. 

Daily chart

Trend: Bearish below 200-day MA

Technical Levels