Us dollar index forecast: bullish momentum holds near 106.50
Press Hub UCapital
Share:
The US Dollar Index (DXY) maintains a bullish structure, supported by a positive RSI and holding above the 100-day EMA. Key resistance levels are 107.45 and 108.00, with potential for further upside toward 110.25. However, support at 106.00 is crucial to sustaining the bullish trend.
Technical overview
The us dollar index (dxy) maintains a bullish structure, trading near 106.50 in the early european session on thursday. the index's ability to stay above the 100-day exponential moving average (ema) and a 14-day rsi above the midline (66.40) signal continued upward momentum.
Key resistance levels
The upper bollinger band at 107.45 serves as the immediate resistance. A sustained break above this level could target 108.00, corresponding to the november 2022 peak. further upside momentum may push the index toward 110.25, a significant level from september 2022.
Support levels
106.00 represents the first downside level; a break below could shift sentiment towards 104.19, the november 7 low.
The 100-day ema at 103.71 is critical; a breach here would risk a decline to the lower bollinger band at 102.95.
Fundamental backdrop
The bullish narrative for the usd is supported by expectations that donald trump’s administration will implement expansionary fiscal policies, potentially stoking inflation. this outlook may temper expectations for aggressive rate cuts by the federal reserve, underpinning the greenback.
Momentum indicators
Rsi: elevated at 66.40, signaling bullish strength without entering overbought territory. bollinger bands: the index is testing the upper band, indicating the potential for further bullish extensions. macd: trending positive, reinforcing the upward bias.
Outlook
the us dollar index remains poised for further gains as long as it sustains levels above 106.00. a break above 107.45 would reinforce the bullish outlook, targeting 108.00 and potentially 110.25. however, failure to hold above 106.00 could lead to a corrective phase, with key supports at 104.19 and 103.71.
Technical overview
The us dollar index (dxy) maintains a bullish structure, trading near 106.50 in the early european session on thursday. the index's ability to stay above the 100-day exponential moving average (ema) and a 14-day rsi above the midline (66.40) signal continued upward momentum.
Key resistance levels
The upper bollinger band at 107.45 serves as the immediate resistance. A sustained break above this level could target 108.00, corresponding to the november 2022 peak. further upside momentum may push the index toward 110.25, a significant level from september 2022.
Support levels
106.00 represents the first downside level; a break below could shift sentiment towards 104.19, the november 7 low.
The 100-day ema at 103.71 is critical; a breach here would risk a decline to the lower bollinger band at 102.95.
Fundamental backdrop
The bullish narrative for the usd is supported by expectations that donald trump’s administration will implement expansionary fiscal policies, potentially stoking inflation. this outlook may temper expectations for aggressive rate cuts by the federal reserve, underpinning the greenback.
Momentum indicators
Rsi: elevated at 66.40, signaling bullish strength without entering overbought territory. bollinger bands: the index is testing the upper band, indicating the potential for further bullish extensions. macd: trending positive, reinforcing the upward bias.
Outlook
the us dollar index remains poised for further gains as long as it sustains levels above 106.00. a break above 107.45 would reinforce the bullish outlook, targeting 108.00 and potentially 110.25. however, failure to hold above 106.00 could lead to a corrective phase, with key supports at 104.19 and 103.71.