US Dollar Price Forecast: Holds Steady Around 104.50, Above Key Moving Averages
The US Dollar Index (DXY) remains steady around 104.50 during European trading on Friday, extending its daily gains. Analysis of the daily chart suggests a continued bullish trend, with the DXY moving within an ascending channel.
The 14-day Relative Strength Index (RSI) remains above 50, supporting the bullish sentiment. Additionally, the nine-day Exponential Moving Average (EMA) sits above the 14-day EMA, signaling upward momentum in the short term.
On the upside, resistance could push the DXY toward the recent four-month high of 105.45, reached on November 6. A decisive break above this level may strengthen market sentiment and propel the DXY toward the psychological mark of 106.00, which aligns with the upper boundary of the ascending channel.
On the downside, immediate support is at the nine-day EMA around 104.25, followed by the 14-day EMA at 104.09. A break below this level may introduce downward pressure, potentially driving the DXY toward the lower boundary of the ascending channel at 103.70.