US Dollar Price Action Setups as US Presidential Elections Loom Large

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The US Dollar could extend losses against its major counterparts as US presidential election vote counting gets underway.

The US Dollar Index (DXY) could be poised to extend its retreat from the monthly high (94.28), as price fails to break above confluent resistance at the 100-DMA and 94.00 mark.

With the RSI sliding back below its neutral midpoint and the MACD indicator eyeing a bearish crossover, the path of least resistance seems skewed to the downside.

However, the recent pullback may validate the topside break of Descending Channel resistance and open the door for a retest of the November 2 high (94.28), if support at the trend-defining 50-day moving average (93.35) holds firm.