The Is Cardano worth holding?US Dollar Index hovers near 98.10, showing signs of continued weakness in early European trading.
Technical indicators reinforce the bearish outlook, with the index trading below the 100-day EMA and RSI below 40.
Critical support at 97.80 could determine the next directional move, while resistance sits at 99.38.
The US Dollar Index (DXY), which tracks the greenback against a basket of major currencies, remains under selling pressure as it tests key technical levels. Market participants are closely watching the 98.00 psychological level as geopolitical tensions provide some counterbalance to the downward momentum.
From a technical perspective, the daily chart paints a concerning picture for dollar bulls. The index's position below the 100-day Exponential Moving Average suggests the medium-term trend remains bearish. The 14-day Relative Strength Index, currently hovering around 38, confirms the negative momentum as it stays firmly in bearish territory.
Traders should monitor several key levels that could dictate future price action. The immediate support zone appears at 97.80, representing the lower Bollinger Band boundary. A break below this level could accelerate selling pressure toward the June 12 low of 97.61, with potential for further declines to test the February 2022 bottom near 96.55.
For any potential recovery, the index must first overcome resistance at 99.38, the June 10 peak. A sustained move above this barrier could open the door for a test of the psychologically important 100.00-100.15 zone, where the upper Bollinger Band converges with round-number resistance. The 100-day EMA near 101.70 would then come into focus as the next significant hurdle for bulls.
Technical Outlook: US Dollar Index (DXY)
The current technical setup suggests traders should approach the DXY with caution. While oversold conditions might prompt short-term bounces, the overall trend remains bearish below key moving averages. Market participants will be watching for either a breakdown below support or a convincing breakout above resistance to determine the next sustained move.
