Dollar Index Faces Critical Test at 99.42
The US Dollar Index is attempting to recover from recent losses after bouncing off key support zones around 98.50-98.60. However, despite a rebound in short-term momentum, technical indicators suggest that this rally may be corrective rather than a confirmed trend reversal.
A more convincing bullish shift would require the index to break through successive resistance levels and hold firmly above them. The first major test for buyers comes at 99.42, where a breakout could give the US dollar room to target 99.92-100.00.
On the other hand, failure to break above 99.42 would be a bearish signal that could bring sellers back into control, particularly if accompanied by weakening momentum. This scenario could lead to further downside toward approximately 98.30.