US Dollar Index (DXY) COnsolidating Within an Ascending Channel
Chart Analysis:
The U.S. Dollar Index (DXY) continues to trend higher within a well-defined ascending channel (green zone). The index has pulled back slightly but remains firmly within its bullish structure.
1️⃣ Ascending Channel:
Price action remains within the channel, with current consolidation near the midline around 108.08. A move to test the upper or lower bounds of the channel could be next.
2️⃣ Moving Averages:
50-day SMA (blue): Positioned at 105.69, acting as short-term dynamic support.
200-day SMA (red): Positioned at 104.29, confirming the long-term bullish trend.
3️⃣ Momentum Indicators:
RSI: At 65.34, indicating strong bullish momentum but nearing overbought levels, which may limit immediate upside.
MACD: Bullish momentum remains intact, with the MACD line above zero, though the histogram suggests a potential slowdown.
What to Watch:
A move higher could target the upper channel boundary near 109.50–110.00, while a pullback may see support at the 50-day SMA near 105.69 or the channel's lower boundary.
RSI and MACD movements will be key to gauging whether the bullish momentum can persist or if a deeper retracement is likely.
The DXY remains in a bullish structure, with the ascending channel providing a clear technical framework for traders to monitor.
-MW
The U.S. Dollar Index (DXY) continues to trend higher within a well-defined ascending channel (green zone). The index has pulled back slightly but remains firmly within its bullish structure.
1️⃣ Ascending Channel:
Price action remains within the channel, with current consolidation near the midline around 108.08. A move to test the upper or lower bounds of the channel could be next.
2️⃣ Moving Averages:
50-day SMA (blue): Positioned at 105.69, acting as short-term dynamic support.
200-day SMA (red): Positioned at 104.29, confirming the long-term bullish trend.
3️⃣ Momentum Indicators:
RSI: At 65.34, indicating strong bullish momentum but nearing overbought levels, which may limit immediate upside.
MACD: Bullish momentum remains intact, with the MACD line above zero, though the histogram suggests a potential slowdown.
What to Watch:
A move higher could target the upper channel boundary near 109.50–110.00, while a pullback may see support at the 50-day SMA near 105.69 or the channel's lower boundary.
RSI and MACD movements will be key to gauging whether the bullish momentum can persist or if a deeper retracement is likely.
The DXY remains in a bullish structure, with the ascending channel providing a clear technical framework for traders to monitor.
-MW
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