The US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, is advancing for the third consecutive session and trading near 98.30 during Wednesday’s European session. Technical indicators suggest a strengthening bullish bias as the index holds slightly above the descending channel pattern on the daily chart.
The 14-day Relative Strength Index (RSI) sits right at the neutral 50 mark, indicating indecision among traders. However, short-term momentum has shifted positively, with the DXY climbing above the nine-day Exponential Moving Average (EMA), signaling growing upward pressure.
On the upside, the index is currently testing resistance at the 50-day EMA around 98.41. A sustained break above this level, followed by the 98.50 barrier, could reinforce the bullish outlook and open the path toward the three-week high of 99.07, last seen on August 5. Continued gains may push the index toward the more formidable resistance zone near the three-month high of 100.26, recorded on August 1.
Support, meanwhile, is found at the nine-day EMA at 98.22. A break below this level could weaken the short-term uptrend and drag the index back inside the descending channel. Deeper losses would expose the six-week low of 97.11 from July 24, with further downside risk toward the channel’s lower boundary around 96.70.
Overall, while short-term momentum favors the bulls, a clear breakout above 98.50 is needed to confirm sustained upward traction.
US Dollar Index: Daily Chart
