US Dollar Index Price Analysis: 10-day SMA restricts immediate downside amid US-China tension

• US Dollar Index defies the previous day’s downside momentum amid fresh risk-off.
• White House Adviser Peter Navarro initially called off trade deal with China, but stepped back afterward.
• The previous week’s low can offer immediate support ahead of the monthly bottom.

US dollar index, a gauge of the greenback versus major currencies, declines to 97.03 during Tuesday’s Asian session. The USD barometer earlier surged to the intraday high of 97.25 after the White House Adviser Peter Navarro ruled out a trade deal with China. Though the following statements from the Trump administration member dragged the greenback gauge then after.

Even so, 10-day SMA offers immediate support to the index around 97.00, a break of which could drag the pair to last Tuesday’s low near 96.45.

In a case where the greenback bears dominate past-96.45, 96.00 and the monthly low near 95.77 will be in the spotlight.

Alternatively, a clear break above Friday’s top of 97.72 will have to cross 61.8% Fibonacci retracement of March month upside, at 97.83 to aim form 98.80/85 resistance confluence including 50-day SMA and 50% Fibonacci retracement.

DXY daily chart

Trend: Pullback expected