US Dollar Index Price Analysis: Drops back towards 200-HMA amid US election updates

• US dollar index (DXY) seesaw after posting the heaviest drop in two months.
• US election polls favor Democrat’s victory, Biden wins in Virginia.
• MACD flirts with bulls, two-week-old support line adds to the downside filters.

US dollar index (DXY) struggles for a clear direction, recently declining, while taking rounds to 93.40/45 during Wednesday’s Asian session. The greenback gauge versus major currencies portrays the market sentiment as early polls concerning the US election favor the risk-on mood backed by Democratic victory.

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Technically, the US currency index fails to keep its bounce off the 200-HMA level of 93.35 but MACD flirts with the bulls. As a result, a clear downside below 93.35 will have to conquer an ascending trend line from October 21, at 93.20 now, to gain the bears’ confidence.

On the contrary, an area including October 28 high and October 30 low surrounding 93.65 restricts the gauge’s immediate upside ahead of the monthly top near 94.28.

Although markets cheer Democratic victory amid hopes of further stimulus, President Donald Trump is known for surprises and the early counts are also too close to keep the traders worried. The same keeps the USD on the bulls’ radars.

US dollar index hourly chart

Trend: Pullback expected