Yesterday, the dollar index (DXY) moved to a low of 105.321. The 200 day moving average was at 105.374. The brief dipped below that moving average level was quickly bought. Also near the level is the 38.2% retracement of the move up from the May 25, 2021 low. That level comes in at 105.135. Finally the price also tested the swing low from November 15 at 105.34.
So that cluster of support attracted dip buyers against the area (with stops on a break below).
The current price is backup at 106.72. The high price today and reached 106.80 so far.
Technically speaking, holding those levels keeps the buyers in play and probably more in control from a longer-term perspective. However, that picture could change in an instant on a move below that cluster support starting with the 200 day moving average and finishing with the break of the 38.2% retracement.
Keep that area in mind going forward. It's a key area for all traders.
