Dollar index tests the 200-day moving average
It has been trying to bang above the 200-day MA (blue line) @ 91.97 since Friday last week, but so far the level is keeping the dollar in check still.
Looking at the big picture, the lows this year bounced off the 61.8 retracement level @ 88.42 after having formed a double bottom pattern before consolidating then breaking higher. The break of the 100-day MA (red line) is an encouraging sign for buyers, but should it break the 200-day MA it would represent a major victory.
The dollar index hasn't been above both the 100-day and 200-day MAs since the start of 2017 - and at the time the dollar was still riding off the highs (or what is leftover) from Trump's appointment as POTUS.
If buyers are able to carry the momentum past the 200-day MA, the outlook for the dollar will then turn bullish and that momentum could very well see a test of the 38.2 retracement level @ 94.30 - or at least the 92.50 level (dotted line).
Although the dollar is facing a key obstacle now, the resurgence of the greenback over the past two to three weeks has some sort of feel-good factor to it. Even if there is still the looming issue of the twin deficits in the background.
