Dollar Index Price Analysis: Languishing near two-year lows

• Dollar index fell to a 22-month low of 94.57 early Friday. 
• A weekly close below 94.64 could prove costly for the bulls. 
• The 4-hour chart suggests scope for a minor bounce in the next few hours. 

The dollar index (DXY) is currently trading at 94.64, having printed a low of 94.57 early Friday. That was the lowest level since September 2018. 

The weekly chart MACD histogram is reporting the strongest bearish bias in three years. Meanwhile, the weekly chart relative strength index (RSI) is hovering in bearish territory below 50 and pointing south. 

As such, acceptance or weekly close below 94.64 (March low) cannot be ruled out. That would open the doors for a deeper decline toward 92.00 (May 2016 low). 

However, in the next few hours, we may see a minor recovery rally, as the MACD is printing higher lows on the 4-hour chart, a sign of weakening of the bearish trend. Meanwhile, the RSI is reporting a bullish divergence. 

The immediate bearish bias would weaken only if the index scales the former support-turned-resistance at 95.72 (June low). 

4-hour chart

Trend: Bearish

Technical levels