Dollar Index Analysis and Path Ahead
Evening Update: Will the Dollar Index (DXY) continue to increase or decline after reaching 102.50 ?
Last month, the Dollar Index (DXY) was trading at its strong support level of 100.50 to 100.80, but it quickly recovered and reached the 104.50-105.00 range. This zone provided significant support for the Dollar Index, which the price closely followed until surging dramatically above it. Previously, between February and May, the 100.50-100.80 zone provided consistent support. The DXY rapidly rebounded, trading between 106.50 and 107.00.
The US Dollar Index (DXY) has seen some selling pressure, falling from weekly highs of 104.50-105.00. We'll go over all of this using 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 might move to 105.50-107.
- The chart reveals a potential triple bottom between 100.50 and 100.80, and the DXY has been gradually climbing since testing this key support level.
Please examine the chart above, which depicts a crucial support zone. The Dollar Index rose as bulls successfully held the 100.50-100.80 level. As we saw in 2023, the Dollar Index generally moves horizontally in the 100.50 to 105.50 region. DXY may soon trade between 105.50 and 107.
The previous and current month's CPI data boosted dollar bulls, followed by unemployment claims data, and the index increased from 102.20 to 104.50/105.00. Today's CPI numbers helped the Dollar Bulls.
The US CPI gained 0.4% on the month, in line with predictions and up from a 0.3% increase in January. Headline CPI inflation increased 3.2% year on year, up from 3.1% in January. The U.S. core CPI grew 0.4% month on month, exceeding expectations of 0.3%. The headline core CPI rose 3.8% year on year, down from 3.9% in January and falling short of expectations for a 3.7% increase.
Based on charts and statistics, we can deduce that the DXY is bullish and will move in the 105.50-107.00 zone. It may return to the 102.50-102.00 level in the near future, but each down move gives bulls room to drive prices higher into the 105.50-107.00 range.
To establish support and resistance levels, please see the Dollar Index weekly chart. Every level is represented by a spot chart.
|
Dollar Index |
Support |
Resistance |
|
Level 1 |
100.50 |
105.50 |
|
Level 2 |
99.50 |
107.00 |