Dollar Index Analysis
Will Dollar Index (DXY) hold the critical support at 100.50-100.80 zone ?
The Dollar Index (DXY) is trading on critical support this week around the 100.50-100.80 zone, this is a significant area for the Dollar Index. This 100.50-100.80 zone served as a good support earlier in February/May and DXY bounced well towards the 106.50-107.00 zone from there.
- DXY trading around the strong support zone of 100.50-100.80 levels.
- As per the chart we can expect the bounce in DXY towards the 103.50-104 zone.
- Chart suggesting a triple bottom around 100.50-100.80 zone and DXY showing up move after touching this critical support.
Please check the above mentioned chart and considering this critical support in mind, it would be surprising if dollar bulls give up this 100.50-100.80 zone without a fight. It seems the Dollar Index is more over sideways in a big range from 100.50 to 105.50 as we have seen in 2023. An important thing for DXY bulls in 2024 will be whether or not they can reclaim the 103.00-103.50 region. We saw the DXY pause here from the past few days due to holiday season, If the index can reclaim that 103.00-103.50 region, it would signal dollar strength in early 2024 and DXY may head towards 105.50-106 zone again. But if it fails to hold and the DXY loses 100.80 over the coming days, it would signal further dollar weakness toward 99.50-99.70.
Please check the support and resistance level of Dollar Index (DXY) on the weekly chart. All levels are in spot chart :
|
Dollar Index |
Support |
Resistance |
|
Level 1 |
100.50 |
103.50 |
|
Level 2 |
99.50 |
105.50 |