Dollar Rally Falters as Yen and Sterling Gain Footing in Q4

The US dollar's rally in September has left many wondering why it occurred despite weakening oil prices and central bank intervention, which typically contribute to a weaker greenback.

Despite high yields on US bonds, which should theoretically weaken the dollar, the yen and sterling have found their footing in Q4.

The DXY index is now at resistance levels of 100.82 to 101.92, with momentum on the Stoch RSI suggesting a reversal or retracement for the greenback.

According to Alchemy Markets/TradingView charts, breaking the 4H-20 EMA band would be the first sign of weakness in the dollar's short-term uptrend.