Analysis: The Dollar Index (DXY)

*US Dollar seems to be taking corrections from projected resistance levels*

• The US Dollar is witnessing minor weakness in the Asian session on Thursday, after testing the immediate resistance at 102.43 (fib level 0.236). 

• The index is trending lower in the selling zone and moving towards immediate support at 102.08. 

• US Dollar steady with Red Sea tensions still making headlines.

• A boosting Consumer Confidence strengthened the dollar index a little.

• However, the market seems to be modestly correcting again as markets enter holiday mode.

*Current Situation:*

 On Thursday, the US dollar traveled with modest losses from the previous day’s close. near 102.25. These are the same level that we mentioned in Wednesday’s report.

*Technical Analysis*

• The index gave a bearish breakout below the small pennant pattern. 

• However, it found support near 102.15 – the levels suggested in yesterday’s report.

• Prices might further fall if it successfully sustains below the 102.15 level. However, if it fails to give a lower breakout, then bullish strength in the index might be witnessed and prices might rise higher. 

• The prices are uncertain and expected to trend sideways from the current level with immediate support at 102.15.

*Technical Indicators:*

• DXY has started to hover in the selling zone as per technical indicator: 

• Prices fall below the middle band of the Bollinger band indicator, and 

• CCI indicator also drags below the 0.0 mark at -46.48.

• The indicators suggest minor bearishness in DXY.

*Important Levels to Watch:*

• Support: The index might witness an initial hurdle at 102.08 (the week’s crucial support level) towards its falling trend. Below this level, DXY might test 101.89 at fib level 0.0 

• Resistance: It would be intraday highs of 102. 43 (fib level 0.236) and if the dollar index gives a breakout above, then the door to higher levels towards 103.00 gets unlocked.

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