US Dollar Index Price Analysis: DXY slides below 103.30 resistance confluence as US Retail Sales looms

• US Dollar Index takes offers to refresh intraday low, prints the first daily loss in four so far.
• Convergence of 200-DMA, descending trend line from March restricts immediate upside amid overbought RSI.
• DXY sellers remain cautious beyond 102.30 key support with eyes on US Retail Sales for July.

US Dollar Index (DXY) remains on the back foot at the intraday low of around 103.00 amid early Tuesday morning in Europe. In doing so, the Greenback’s gauge versus the six major currencies prints the first daily loss in four.

That said, a convergence of the 200-DMA and a 5.5-month-old descending trend line restrict immediate DXY upside amid the overbought RSI (14) line.

Adding strength to the pullback moves in the US Dollar Index is the market’s preparations for the US Retail Sales for July.

With this, the DXY is likely to extend the latest retreat towards the 50.0% Fibonacci retracement of the March-July downtrend, near 102.70.

However, the 100-DMA and a one-month-long rising trend line together puts a floor under the US Dollar Index Price near 102.30.

In a case where the DXY remains bearish past 102.30, April’s bottom of around 100.80 will be in the spotlight.

On the flip side, a daily closing beyond the aforementioned 103.30 resistance confluence isn’t an open invitation to the DXY bulls as the 61.8% Fibonacci retracement, also known as the Golden Fibonacci Ratio, will challenge the further upside near 103.50.

Also read: US Dollar Index: Firmer yields defend DXY bulls above 103.00 ahead of US Retail Sales

US Dollar Index: Daily chart

Trend: Limited downside expected