US Dollar Index Price Analysis: DXY rebound needs validation from 95.70
- DXY seesaws between previous support line from May and 100-DMA.
- 14-week-old support line adds to the downside filter.
- Sluggish Momentum hints at further grinding towards the north.
US Dollar Index (DXY) holds onto the previous day’s bounce off 100-DMA around 95.40 during Tuesday’s Asian session.
Even so, the greenback gauge needs to cross the support-turned-resistance line from May 25, 2021, near 95.70, which challenges the quote’s immediate upside.
Although the Momentum line tests the buyers, the quote’s ability to stay beyond short-term key supports, namely the 100-DMA level of 95.25 and the multi-day-old support line close to the 95.00 threshold, keeps DXY bulls hopeful.
That said, the US Dollar Index run-up beyond 95.70 will aim for the 96.00 round figure ahead of the challenging November 2021 peak near 97.00.
It’s worth mentioning that the quote’s rise past 97.00 won’t hesitate to challenge January’s peak of 97.44.
On the contrary, a downside break of 95.00 will strength bearish impulsive and hit 2022 low near 94.60. Adding to the downside filters is the October 2021 peak surrounding 94.55.
DXY: Daily chart
Trend: Further rebound expected