- The DXY index hits highs at levels last seen 19 years ago.
- Further gains in the dollar could lead to a test of the 104.00 level.
There is no change in the dollar’s bullish stance as the DXY index rally faltered just below the 104.00 level on Thursday, an area last seen in January 2002.
The intense bullish movement of the dollar remains in overbought territory, as shown by the daily RSI around 80, and this could be a prologue to a possible technical correction in the short term. Against that, initial support is found at the weekly low in the 99.80 area (April 21).
The current bullish stance of the DXY index remains supported by the 7-month line near 96.70, while the long-term outlook for the dollar looks constructive as long as it remains above the 200-day SMA at 95.65.
US dollar index DXY daily chart
US Dollar Index DXY Technical Levels
Source: Fx Street
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