DXY is currently trading at 98.67, stuck below the downward sloping trendline that has consistently sunk every attempted rally. Candlesticks keep showing the pattern of repeatedly getting knocked back down near 99.18, which is no surprise given it’s a clear resistance level. The downward sloping moving averages are just another bearish sign to add to the list.

Elsewhere, the RSI is hovering around 44, which suggests that momentum is very weak but still not quite to the point of being oversold. The first line of defence for buyers is at 98.23, with a more significant support level located at 97.82.

Break below 98.00 and watch as the price drops all the way to 97.49. On the other hand bulls will need a strong close above 99.18 to even think about challenging 99.53

Trade idea: Think about selling if we see a break below $98.20, and be prepared to stop out if we get a close above $99.20.

GBP/USD Steadies at 1.3508 – The Uptrend looks healthy but the Bulls are getting a bit tired