The US Dollar Index (DXY), a gauge of the US Dollar (USD) against six major currencies, eased after modest gains and traded near 101.80 in European hours on Tuesday. Price action stayed above the 50-day Exponential Moving Average (EMA), although the nine-day EMA continued to cap the move. The 14-day Relative Strength Index (RSI) sat around 55, while the FXS Fed Sentiment Index held near 127.51, a mix that pointed to steady momentum but less forceful policy tailwinds than earlier.
Technical Chart Analysis
On the chart, DXY was testing the lower edge of an ascending channel, leaving either a rebound from trendline support or a breakdown if that floor gives way. Resistance was mapped at the nine-day EMA, around 101.98; a push above it would bring the 18-month high of 102.94, set on October 14, into view, and then the ascending wedge top at 103.90. Support lay near 101.70 at the channel base, then the 50-day EMA at 100.94, with a deeper slide opening the five-month low of 98.56 from August 20.
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