US Dollar Price Analysis: Bulls waiting in the flanks of the ECB

• US dollar bulls are lined up near the 50% mean reversion, awaiting the ECB.
• The euro will be the focus for the day ahead, heavily weighted to the DXY index. 

The test of the 50% mean reversion was a bullish development overnight while the index is above the 50-day EMA.

However, the bigger test for the bulls will be the counter trendline which could come of a surprising outcome from the European Central Bank today, depending on the trajectory of the euro. 

DXY daily chart

The 61.8% Fibonacci retracement level guards a restest of the counter trendline, both of which are in the proximity of 92.200/92.500.

On the other hand, if the euro strengthens and should the DXY be rejected from the current horizontal resistance that has the confluence of the 50% mean reversion, the 92 level will likely come back under pressure. 

Here is a read surrounding the latest price action in the euro and what to expect from the ECB:

EUR/USD awaits crunch-time ECB interest rate (taper) decision