DXY remains firm at $99.58, where a moving average retest on the 4H chart suggests support for a bullish trend. On the 4-hour chart, DXY is currently trading at $99.58, with mixed bullish and bearish candles challenging the $99.79 level of the 50-period moving average immediately after a potent breakout candle. The current rally from the $99.16 swing low has created multiple higher highs which signal that buyers are still in control. Support is still present from the trending line and price continues to hold past the prior resistance levels.
On the other hand, RSI is at approximately 52 which implies a neutral to bullish trend. Additionally, $99.38-$99.59 represents a solid consolidation zone on the volume profile. Next Fibonacci targets are found between 100.03-100.31. The pattern in the overall picture is that of bullish, staying above the $99.38 mark and bounded by a trend channel, although any pullback has the potential to be countered by buyers. In the meantime, the bullish trend with higher lows and higher highs seems to be a good option for buyers to get in on a pullback.
Trade Idea: Buy at $99.58, targeting $100.31, with a stop-loss at $99.38.
