The US Dollar Index struggles to retain the rebound from last week’s low (105.41), but DXY may attempt to further retrace the decline from the November high (107.11) as a bull-flag formation takes shape.
DXY Outlook
DXY appears to be stuck in a narrow range after pushing the Relative Strength Index (RSI) into overbought territory for the first time in 2024, and lack of momentum to hold above 105.80 (61.8% Fibonacci extension) may push the US Dollar index back towards 105.00 (23.6% Fibonacci extension).
Next area of interest comes in around the monthly low (103.88), but a bull-flag formation may unfold if DXY pushes above last week’s high (106.40).
In turn, DXY may track the positive slope in the 50-Day SMA (104.42), with a breach above 107.20 (38.2% Fibonacci extension) bringing the 2023 high (107.35) on the radar.
--- Written by David Song, Strategist at FOREX.com
DXY Outlook
DXY appears to be stuck in a narrow range after pushing the Relative Strength Index (RSI) into overbought territory for the first time in 2024, and lack of momentum to hold above 105.80 (61.8% Fibonacci extension) may push the US Dollar index back towards 105.00 (23.6% Fibonacci extension).
Next area of interest comes in around the monthly low (103.88), but a bull-flag formation may unfold if DXY pushes above last week’s high (106.40).
In turn, DXY may track the positive slope in the 50-Day SMA (104.42), with a breach above 107.20 (38.2% Fibonacci extension) bringing the 2023 high (107.35) on the radar.
--- Written by David Song, Strategist at FOREX.com