US Dollar Index Tests Key Support as DXY Slides Towards Historic Low

The US Dollar Index (DXY) is testing pivotal support around its monthly range low at 99.41-49, which coincides with the 38.2% retracement of the yearly advance and the January swing high.

Just below this zone, the 200-day and 52-week moving averages converge on the lower parallel near 99.04/18.

A break or daily close below this slope would fuel the next major leg of the decline towards the August high-day close / May low at 98.68/69 and the objective yearly open at 98.24.

On the other hand, monthly open resistance stands at 99.69, backed by the 2024 low / low close at 100.16/35.

The dollar is testing a major support pivot at the August opening range lows, with risk for exhaustion or price inflection into the lower parallel.