Dollar Index Tests Key Support Ahead of Jackson Hole

The US Dollar Index is testing confluent support at the August high-day close and May low at 98.68/69, according to technical analysis by FOREX.com's Michael Boutros.

Boutros notes that the lower parallel of the July pitchfork rests just below this level, making a break or daily close below it necessary for downtrend resumption. Key support objectives are eyed at the yearly open at 98.24 and the 61.8% retracement of the yearly range at 97.94.

On the other hand, initial resistance is seen near the 200-day moving average at ~98.17, which converges with the median-line this week. A breach or daily close above this slope would be needed to suggest a more significant near-term low is in place and a larger recovery is underway.