The United States Dollar Index could potentially ascend toward the 18-month peak of 102.94. The 14-day Relative Strength Index around 60 suggests a favourable momentum while remaining below overbought thresholds. The immediate support is positioned at the nine-day EMA of 101.93. The US Dollar Index, which measures the value of the US Dollar against six major currencies, is experiencing an upward trend for the third consecutive day, currently trading near 102.20 during the European hours on Tuesday.
The near-term bias is bullish as DXY maintains its position above both the nine- and 50-period Exponential Moving Averages, which reinforces the underlying bid in the broader uptrend. The 14-day Relative Strength Index around 60 indicates a constructive momentum that is not yet overbought, while the stable FXS Fed Sentiment Index near 127.5 suggests that policy expectations continue to be broadly supportive of the dollar’s advance. The technical analysis of the daily chart indicates that the dollar index is remaining within the ascending channel pattern, signalling an ongoing bullish bias.
The DXY may investigate the vicinity of the 18-month peak of 102.94, attained on October 14, succeeded by the upper limit of the channel at 104.50. On the downside, the US Dollar Index may encounter immediate support at the nine-day EMA of 101.93, followed by the lower boundary of the ascending channel around 101.70. Further support is positioned at the 50-day EMA of 101.11. A breach beneath the medium-term price average would exert downward pressure on the dollar index, potentially steering it toward the vicinity of the five-month low of 98.56, observed on August 20.
Strategists observe that the Dollar has started the week on a firmer footing, noting that it “has found good support early this week, as stabilising AI-related sentiment has allowed markets to reconnect with the broader supportive backdrop of a hawkish Federal Reserve and high energy prices.” They argue that this combination of steadier risk appetite and persistent policy and commodity tailwinds is helping to underpin the US currency at the start of the week.
