The US dollar index is moving towards the 200-day simple moving average (SMAs) and the 23.6% Fibonacci retracement level of the down leg from 103.82 to 89.14 at 92.60. The 50- and 100-day SMAs are ready for a bullish crossover, confirming the rebound off the 33-month low of 89.14.
Technically, the stochastic oscillator is approaching the overbought territory, while the MACD is trying to overcome the trigger line in the positive region.
If there is a successful climb above the 200-day SMA, this could drive the index until the 93.17 resistance ahead of the 94.30 level and the 38.2% Fibonacci of 94.77. Above these powerful resistances, the bulls could meet the 95.60 barrier, taken from the inside swing low on June 2020.
In the negative scenario, a decline again could increase selling interest, sending the price around the 50- and 100-day SMAs around the 90.95 support. If the bears retake control could ease the market until the 33-month trough of 89.14 and the low from March 2018 at 88.50.
In brief, the dollar index has been in an upside correction over the last two months and a climb above the 200-day SMA could open the door for more advances.
