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Dollar index creates minor bullish correction
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Technical oscillators are mixed
The US dollar index is making an attempt to recover some ground, holding near the 20-day simple moving average (SMA) and the 104.00 level with the technical oscillators showing some mixed signals. The MACD is losing momentum below its trigger line in the positive area, while the stochastic is moving higher, approaching the overbought zone.
More increases could drive the market towards the three-month high of 104.85, while any closing day above it could endorse the bullish move until the 105.90 resistance.
In the case of drop below the 200-day SMA, immediate support could come from the 103.20 barrier ahead of the 50-day SMA at 103.08. Even lower, the 102.50 level is waiting for a potential rebound off it before slipping to 101.60.
All in all, the dollar index is rising again following the break of the short-term uptrend line but only a climb above the previous peak would confirm the positive structure.
