#viralpost #usd $USDC Sentiment low: US Dollar sentiment hits 14-year low, DXY tests critical 96.60 support
Technicals: DXY below all key SMAs, Doji pattern signals indecision, resistance at 97.20-97.98
Catalysts: Fed rate cut expectations, risk-on sentiment, record underweight dollar positioning
Outlook: Mixed signals with potential breakdown below 14-year trend line, YTD decline of 1.18%
Market Overview
The US Dollar Index (DXY) is trading near 97.00, down 1.18% year-to-date, testing a critical 14-year ascending support line at 96.60
DXY remains below its 50-day (97.20), 100-day, and 200-day (97.60) simple moving averages, confirming a bearish technical posture
Record underweight dollar positioning among global investors reflects the most negative sentiment since January 2012
Despite stronger-than-expected January Non-Farm Payrolls, weaker retail sales and Fed easing expectations have capped any sustained dollar rally
Technical Analysis & Trading Strategy
Key support levels are at 96.50, 96.34, and 96.00, with a decisive break below 96.60 potentially signaling a structural bearish breakout
Immediate resistance is at 97.20 (50-day SMA) and 97.25, with stronger barriers at 97.60 (200-day SMA), 97.75, 97.90, and 97.98
A Doji candlestick pattern indicates market indecision; a close above 97.25 could target 98.00, while a break below 96.34 may accelerate declines to 95.55
Traders are advised to monitor the 96.60-97.98 range; a long position above 97.60 targeting 97.98 with a stop below 96.80, or a short below 96.34 targeting 95.55 with a stop above 96.80