{"id":50379,"date":"2019-10-21T21:40:25","date_gmt":"2019-10-22T04:40:25","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=50379"},"modified":"2019-10-22T01:01:20","modified_gmt":"2019-10-22T08:01:20","slug":"us-dollar-resumes-dance-with-long-term-support","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2019\/10\/21\/us-dollar-resumes-dance-with-long-term-support\/","title":{"rendered":"The U.S. Dollar Resumes Its Dance With Long-Term Support"},"content":{"rendered":"\n

With the U.S. dollar index (DXY) last tested its 200-day moving average (DMA) support, I pondered the possibilities for a breakdown<\/a>. The U.S. dollar index typically sustains moves through its 200DMA, whether a breakout or a breakdown, so I braced myself for the need to jettison my long dollar positions. Instead of follow-through, the U.S. dollar index soon rebounded and even pushed to a new 2+ year high before resuming its dance with the 200DMA. The index is right back to 200DMA support on the heels of its most persistent daily decline since August to September, 2018.<\/p>\n\n\n\n

\"The
The U.S. dollar index (DXY) has bounced along its 200DMA support all year long.
Source: <\/strong>TradingView.com<\/strong><\/a><\/figcaption><\/figure><\/div>\n\n\n\n

Unlike the last 200DMA test which caught me aggressively bullish on the U.S. dollar, this time around, I came into this test much less bullish on the U.S. dollar. A prime drivers for my net bearishness were the signals coming from strengthening emerging market currencies on the optimistic build-up into a deal between the U.S. and China over their Trade War. I used this opportunity to take profits on my short USD\/CAD position, but I am continuing to hold onto my long AUD\/USD position. <\/p>\n\n\n\n