The US Dollar Index is trading at 99.57 on the 4 hour chart & looks to have stabilised just above the 0.5 Fibonacci retracement line at 99.52 after pulling back from 100.54 – its recent swing high.
Price is stuck compressing against an ascending trendline and the 50 period moving average is hovering around 99.52, which is providing some much-needed support to the bulls and reinforcing a generally bullish pattern.
Now, the 0.382 Fibonacci level at 99.76 is acting as a bit of an immediate ceiling, and it looks like 100.06 is still the main breakout level to watch.
The RSI has dropped down into the mid-40s, which is telling us that the momentum is easing off, but not to the point of oversold just yet. If we can keep the price above 99.52 for a bit, we’d likely see a retest of 100.06, but if that fails, I think we’re looking at 99.28 & 98.93 as potential targets.
