US Dollar Index Price Analysis: DXY bulls brace for 97.70 hurdle
- DXY struggles for clear direction after Friday’s pullback from multi-day peak.
- Overbought RSI conditions challenge further upside, 2021 top offers immediate support.
- Bulls remain hopeful until witnessing 100-DMA breakdown, previous resistance from November adds to the downside filters.
US Dollar Index (DXY) dribbles around the highest levels since July 2020, taking rounds to 97.20 during Monday’s Asian session.
The greenback gauge refreshed multi-month high the previous day but the overbought RSI conditions and doubts over the size of the Fed’s rate hike in March triggered the quote’s pullback.
Even so, sustained trading beyond the year 2021 peak and the resistance-turned-support line from November 2021, respectively around 96.95 and 96.25, keep DXY bulls hopeful.
It’s worth noting that the US Dollar Index bears will remain cautious, even if the quote drops below 96.25 until witnessing a clear downside break of the 100-DMA level of 95.05.
Meanwhile, further upside may initially aim for the latest peak of 97.44 and then to the 97.50 round figure.
Though, 61.8% Fibonacci Expansion (FE) of September 2021 to January 2022 moves, around 97.70, will precede the late June 2020 swing high near 97.80 to challenge the US Dollar Index bulls afterward.
DXY: Daily chart
Trend: Bullish