US Dollar Price Analysis: Bears in town and look for a deeper test of support territory

• The 50% mean-reversion target comes in near 103.70.
• Bears can aim for a deeper test towards the golden 61.8% ratio near 103.37.

The bulls are out of town at the start of the week and the price is moving towards a 38.2% Fibonacci retracement of the daily bullish impulse after hitting a 20-year peak last week. The following illustrates the potential for lower.

DXY prior analysis

DXY live update and outlook

From the 4-hour perspective, the price drifted lower as forecasted into the first level of support near 104.20. With commitment from the bears, any upside correction will be met by supply and potentially lead to a deeper correction on the daily chart as follows:

The 50% mean-reversion target comes in near 103.70 while the golden 61.8% ratio is located at the bottom of the wicks around 103.37.