The (DXY) is currently trading at 98.06, holding just below both the 15-day (red) and 20-day (green) moving averages, which are converging at 98.43. This tight clustering of the SMAs signals a period of price consolidation following the extended decline from the 2024 highs near 111.00.
Despite recent rebounds, the DXY has struggled to build sustained upside momentum, failing to reclaim the psychological 100.00 level, which remains a key medium-term resistance.
Key Technical Observations:
- The 15-day and 20-day SMAs remain flat, reflecting a lack of strong directional bias.
- Price action is compressing within a narrow range between 97.80 and 98.90, indicating indecision.
- The broader trend remains bearish, with the downtrend from mid-2024 still intact.
Key Levels:
- Immediate Resistance: 98.90
- Next Resistance: 99.50 (short-term swing high)
- Support: 97.80 (range floor)
- Breakdown Support: 97.00
Bias: Neutral-to-Bearish
As long as price remains capped below 98.90–99.50, the bias leans toward a retest of 97.80 and potentially 97.00. A decisive breakout above 99.50 would be the first signal of a short-term bullish shift, potentially opening a path toward 100.00.
Retail traders should watch for a range breakout to determine directional momentum—downside moves could align with renewed strength in , while upside moves could support further pullbacks in and .
