DXY Tests Key Levels as DXY Buyers Defend Trend Support
The US Dollar Index (DXY) has found support from its long-term ascending trendline since February, confirming efforts to reestablish a trading range after last week's steep drop. The DXY is currently trading at 100.05, with buyers defending the 99.48 horizontal support and preventing further price weakening.
Currently, the price action balances the 100-day EMA (Exponential Moving Average) at 99.93 with the 50-day EMA at 101.44. A sustained upside break from the current trading range at 100.45 would support a bullish trend and target 101.61 and subsequently 102.66.
Momentum indicators have yet to confirm the strength of the bullish trend, with the RSI (Relative Strength Index) recovering from oversold levels but remaining below the neutral 50 level. The strength of the bullish trend will be confirmed with a daily close above 100.45.