Dollar Index Stalls at Key Support Amid Bearish Broader Trend

The US Dollar Index (DXY) has been trading in a sideways range on the 4-hour chart, but the broader picture remains bearish after it broke below its declining moving average. The index is currently testing a key support zone around 99.53-99.55, which represents the lower boundary of this range.

From a technical perspective, momentum indicators show that the Stochastic has entered relatively low levels, indicating oversold conditions and potentially giving the US dollar an opportunity to rebound from current levels.

If the index holds above 99.53 and reclaims 99.86, it could increase its chances of further upside toward 100.00, followed by the 100.31-100.44 zone.