DXY Slides Lower, But Bullish Technical Setup Remains Intact

The US Dollar Index (DXY) is trading around the 101.30-101.25 region, down over 0.15% for the day.

The index's recent gains have been attributed to some profit-taking heading into the weekend and repositioning trade ahead of the FOMC policy meeting next week.

However, any meaningful depreciation seems elusive as elevated crude oil prices continue to fuel inflationary concerns and expectations of at least one interest rate hike by the US Federal Reserve (Fed).

The technical setup remains bullish, with the DXY holding well above the 200-period Simple Moving Average (SMA) on the 4-hour chart.