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US Dollar Index Tries to Hit 23-Month Peak; Remains Bullish in Medium Term

The US dollar index is still rising above the 50-day moving average, edging towards the 23-month high of 98.05 achieved on April 25. However, the short-term bias is tilted to the downside as the RSI indicator is turning marginally lower in the positive region, while the stochastic oscillator posted a bearish crossover within the %K and %D lines in the overbought territory, indicating an overreached rally.

If the price posts a bearish retracement as the momentum oscillators signal, support is coming at the 96.85 level, which stands near the 50-day SMA. More losses could challenge the uptrend line, which overlaps with the 200-day SMA, currently at 96.10.

Alternatively, if the index moves higher, the 23-month high of 98.05 could attract traders’ attention once again and any violation above this hurdle could open the way for the 98.70 resistance, posting a higher high in the long term.

In the bigger picture, the dollar index has held in an upside tendency, however, looking at the very short-term, the price is trying to post a higher high confirming the ascending profile.

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