Dollar Index Treading Water Ahead of NFP Week

The US Dollar Index (DXY) is approaching significant support due to its long-term ascending trendline intersecting with the 100-day EMA, currently at 99.92.

A recent fall in the RSI to 34 indicates a bearish trend may be losing momentum, but the broader uptrend remains in effect.

The next few daily candles will dictate whether the trend remains bullish or if a deeper correction is in effect.

If prices hold above the trendline, expect a move to 100.45, with the 101.61 target remaining in effect.