Dollar Index Analysis

• 05 March, 2024 Ruchit Thakur

Dollar Index Analysis

Evening Update: Will the Dollar Index (DXY) continue to rise or fall after reaching 105.00 ?

Last month, the Dollar Index (DXY) was trading at its strong support level of 100.50 to 100.80, but it swiftly recovered and touched 104.50. This zone provided strong support for the Dollar Index, which the price closely tracked before soaring far above it. Previously, from February to May, the 100.50-100.80 zone offered steady support. The DXY recovered quickly, trading between 106.50 and 107.00.

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 strong support range of 100.50-100.80.
• Based on historical trends, the DXY may rise to 105.50-107. 
• The chart shows a possible triple bottom between 100.50 and 100.80, and the DXY has been slowly rising since testing this important support level. 

Please see the diagram above, which represents the important support zone. The Dollar Index climbed as bulls successfully maintained the 100.50-100.80 barrier. As we observed in 2023, the Dollar Index trades mostly horizontally around the 100.50 to 105.50 range. DXY could soon trade between 105.50 and 107.

The previous CPI data bolstered dollar bulls, followed by unemployment claims data, and the index rose from 102.20 to 104.50. Today's CPI figures boosted the Dollar Bulls.

Using charts and statistics, we can conclude that the DXY is bullish and will trade between the 105.50-107.00 range. It may return to the 102.50-103.00 level in the near future, but each down move allows bulls to push prices higher into the 105.50-107.00 zone.

Please refer to the Dollar Index's weekly chart to determine support and resistance levels. Each level is represented by a spot chart.