DXY Holds Above 99.40 as Traders Await CPI Data
The US Dollar Index (DXY) holds a positive bias for the third straight day as traders await the release of the latest US consumer inflation figures. The index remains below the 100.00 psychological mark, and technical analysis suggests that it will be prudent to wait for a move beyond the 23.6% Fibonacci retracement level before positioning for further gains.
The DXY holds below a dense Fibonacci retracement stack and the 200-period Exponential Moving Average (EMA) on the 4-hour chart. The Moving Average Convergence Divergence (MACD) stays marginally in positive territory, while the Relative Strength Index (RSI) hovers near 51.
The key support to watch is the Fibonacci anchor near 99.40, where a break would reopen the path toward deeper weakness in the DXY.