The DXY sits at $97.99 on the 4h timeframe, trading under a white descending line that traces down from the top in April and is respecting a red MA (50 period) at $98.10 as a dynamic resistance. In the near term we have a green candle that appears to form a small bullish hammer but does not pass the $98.09 pivot, with long upper wick and price rejection. It holds a blue support line and a horizontal $97.61 area, forming small higher lows in a short-term base.
RSI is hovering at the level of 50, without divergence. From a Fibonacci perspective, the range from May is projected to $98.59 and $99.09 as next resistance. A pivot is visible at $98.00, a key level to monitor for sellers defending against any rise to the ceiling of the channel. Structure stays neutral under $98.59 with the price inside this multi-week downward channel.
Trade Idea: Buy at $97.98 targeting $98.59, stop loss $97.61.
