US Dollar Index DXY technical analysis

DXY is in a daily downtrend, trading below its 20-day SMA at 99.3604, but short-term momentum is stretched, with 4-hour RSI at 32 suggesting oversold conditions. Price is holding at 99.157, trapped in the major daily support zone of 97.63-100.64, which has seen 29 touches. On the 4-hour chart, price is testing the lower edge of resistance at 98.557-100.083 (29 touches), while a declining trendline at 99.6546 caps upside with three touches.

Bulls must reclaim the 4-hour SMA20 at 99.3451 and clear the 99.6546 trendline to open the path toward the 101.28-101.8 daily resistance zone. Bears need a daily close below 97.63 to confirm a breakdown and extend the decline toward lower levels.