US Dollar Index Price Analysis: DXY bulls approach 96.00 immediate hurdle
- DXY stays firmer around intraday top, up for the second consecutive day.
- Sustained trading beyond 100-DMA, 15-week-old support line joins firmer Momentum to keep buyers hopeful.
US Dollar Index (DXY) holds on to the post-inflation gains around 95.90, up 0.20% intraday during Friday’s Asian session.
In doing so, the greenback gauge keeps Thursday’s bounce from a multi-day-old support line and the 100-DMA amid the firmer Momentum line.
That said, the 50-DMA level surrounding 96.00 restricts the DXY’s immediate upside ahead of early January’s peak near 96.50. However, a horizontal area comprising tops marked since November, near 96.90-95, precedes the 97.00 threshold to become a tough nut for the bulls.
Alternatively, the 100-DMA and an upward sloping trend line from October, respectively near 95.30 and 95.20, limit short-term declines of the US Dollar Index.
It should be noted, though, that the DXY weakness past 95.20 will make it vulnerable to test January’s low near 94.60.
Overall, US Dollar Index remains on the firmer footing toward the short-term key horizontal hurdle.
DXY: Daily chart
Trend: Further upside expected