12 February, 2024 Ruchit Thakur

Dollar Index Analysis

Evening Update: Will the Dollar Index (DXY) continue to rise or decline after testing the 104.50 resistance level?

Last month, the Dollar Index (DXY) was trading near a strong support level of 100.50 to 100.80, and it recovered impressively, hitting 104.50. This zone offered significant support to the Dollar Index, which the price cautiously watched before exploding far beyond it. Previously, between February and May, the 100.50-100.80 zone supplied regular help. The DXY recovered quickly after that, trading in the 106.50-107.00 zone.

The US Dollar Index (DXY) has experienced some selling pressure, sliding from weekly highs of 104.50. We'll go over all of this with a chart and several time frames. Please have a look.

DXY has a solid support range of 100.50 to 100.80.
Based on previous trends, the DXY could rally to 105.50-107.
The chart indicates a potential triple bottom between 100.50 and 100.80, and the DXY has been slowly rising since testing this critical support.

Please refer to the key support zone shown in the figure above. The Dollar Index climbed as bulls successfully maintained the 100.50-100.80 barrier. As we observed in 2023, the Dollar Index appears to trade primarily horizontally in a range of 100.50 to 105.50. DXY may shortly trade in the 105.50-107 area.

The previous CPI data bolstered dollar bulls, followed by unemployment claims data, and the index rose from 102.20 to 104.50. Tuesday's CPI data will provide new direction for Dollar Bulls.

Please take a look at the chart to grasp its relevance. The Dollar Index (DXY) is facing short-term supply around 104.50. Any drop towards the 102.50-103.00 level would be a good opportunity to go long in the Dollar Index.

Last week, initial unemployment claims increased more than expected. Initial unemployment claims increased by 224K from a week earlier. Continuing unemployment claims also exceeded expectations.

Using charts and statistics, we can determine that the DXY is bullish and headed for the 105.50-107.00 zone. It may fall back to the 102.50-103.00 range in the short term, but each down move presents an opportunity for bulls to drive prices up into the 105.50-107.00 range.

Please refer to the weekly chart of the Dollar Index (DXY) for support and resistance levels. Each level is represented by a spot chart.

Dollar Index	Support	Resistance
Level 1	100.50	105.50
Level 2	99.50	107.00

Report

Dollar Index Analysis

Dollar Index Analysis

Please take a look at the chart to grasp its relevance. The Dollar Index (DXY) is facing short-term supply around 104.50. Any drop towards the 102.50-103.00 level would be a good opportunity to go long in the Dollar Index.

Last week, initial unemployment claims increased more than expected. Initial unemployment claims increased by 224K from a week earlier. Continuing unemployment claims also exceeded expectations.

Using charts and statistics, we can determine that the DXY is bullish and headed for the 105.50-107.00 zone. It may fall back to the 102.50-103.00 range in the short term, but each down move presents an opportunity for bulls to drive prices up into the 105.50-107.00 range.