US Dollar Index Price Analysis: DXY stays on the way to 98.55 resistance confluence
|- DXY retreat from intraday high, holds onto Friday’s rebound from one-week low.
- Sustained trading above 100-SMA, monthly horizontal support keep buyers hopeful amid steady RSI.
- 50-SMA, weekly resistance line challenge short-term upside momentum.
US Dollar Index (DXY) pares intraday gains around 98.30 during Monday’s Asian session. However, the greenback gauge keeps the last week’s U-turn from one-month-old horizontal support and the 100-SMA.
Given the steady RSI supporting the latest rebound from the aforementioned key supports, DXY is likely to remain firmer.
That said, a convergence of the 50-SMA and a descending trend line from March 14, near 98.55, becomes the key short-term hurdle for the US Dollar Index bulls to cross.
Following that, the 99.00 threshold will act as an intermediate halt during an upward trajectory towards the monthly peak of 99.41.
Meanwhile, the 100-SMA and a horizontal support area from late February, respectively around 98.15 and 97.70, act as tough nuts to crack for the DXY bears.
In a case where the quote drops below 97.70, the odds of its further fall towards an upward sloping trend line from February 10, near 97.25, can’t be ruled out. Though, the 200-SMA level of 97.00 can defend the bulls afterward.
DXY: Four-hour chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.