Dollar Index Hits Key Resistance at 99.75

The US Dollar Index (DXY) has hit a technical confluence around 99.75, where the 100-period simple moving average and the 38.2% Fibonacci retracement level coincide.

This zone is acting as a strong barrier to recent upside attempts, leaving the dollar vulnerable to renewed downside pressure if sellers defend the area.

Traders are closely watching this level because it also coincides with a prior breakdown zone, making it a potential pivot for short-term direction.

The market's sensitivity to headlines is underscored by the fact that volume and momentum indicators, such as the RSI, are currently neutral, suggesting that the market is awaiting a catalyst to determine the next leg.