No double bottom breakout yet for DXY

U.S. Dollar Index (DXY) stalls after testing key resistance at 100.22-100.26

We highlighted the potential for a double bottom on the U.S. Dollar Index (DXY) in our November 4th The Chart Check report. While the tactical technicals remain bullish for DXY, it stalled at key resistance at the declining 200-day moving average (DMA) and the neckline of the developing double bottom near 100.22-100.26 earlier in the week.

The ensuing tactical dip for the DXY shows plenty of support at rising 13-, 26-, and 40-DMAs from 99.47, 99.13, and 98.60 and at the daily Ichimoku cloud span from 98.24 down to 97.75.

If these supports hold, confidence remains in the developing double bottom. If the DXY decisively rallies above 100.22-100.26, it would confirm this potentially important double bottom. Why is it important? Because completing this double bottom would also confirm a successful test of the DXY's 14-year+ uptrend line.

See Chart 1 and Chart 2 below as well as our November 4th The Chart Check for more on the DXY.

Chart 1: U.S. Dollar Index (DXY): Daily chart

Chart 2: U.S. Dollar Index (DXY): Weekly chart