DXY Fails to Break Above 99 Level, Bears Gain Upper Hand

The US Dollar Index (DXY) is currently trading near the 99.06 level on the four-hour timeframe, but has failed to sustain its recent gains and retreated from the 99.80 area.

In a technical analysis of the DXY, XS.com notes that the index remains below the declining moving average shown on the chart, indicating continued technical weakness.

As long as the price fails to reclaim the 98.67-99.70 zone and close above it, the short-term outlook for the DXY remains bearish.

On the downside, XS.com is closely watching the 98.80-98.60 area as a key technical support zone, where clear buying interest has previously emerged.