Dollar Tests Support as Breakout Awaits

The US Dollar Index is testing its support zone after pulling back from recent highs around 101.50 on the 4-hour timeframe.

The index has managed to remain above the ascending trendline extending from the mid-July low, indicating that the broader bullish trend has not yet lost momentum.

However, if support is broken and the price closes below 101.15, profit-taking could accelerate toward the 100.85 area, which marks the next corrective target and significant short-term support level.

A breakout above the immediate resistance at 101.45 would confirm the resumption of the uptrend, opening the door for a retest of the recent high and potentially higher levels in the coming sessions.