Dollar Index Bears Outweigh Bulls as Resistance Holds Firm
The US Dollar Index has been struggling to break free from its descending channel on the 4-hour chart. Currently sitting at 98.95, it remains below the 50-EMA at 99.15 and the 100-EMA at 99.48, indicating a bearish trend.
The Relative Strength Index (RSI) is currently at 47, indicating that momentum has not yet recovered enough to signal a bullish reversal. However, it has regained its footing from oversold territory.
Immediate resistance for the DXY is found at 99.12, with additional levels at 99.41, 99.69, and 100.10 above that. Support lies at 98.57, 98.19, and 97.84.
The author maintains a bearish outlook for the DXY until it trades above 99.41, as a break above this level would strengthen the recovery case and expose the higher resistance levels. A confirmed break below 98.57 would heavily reinforce the bearish trend.