Is the Dollar Index (DXY) Rolling Over?

Chart Analysis:

The U.S. Dollar Index (DXY) has pulled back from its recent highs after testing the 110.00 resistance level. The index remains within an established upward channel, but the latest price action suggests a short-term loss of momentum.

1️⃣ Uptrend Intact but Testing Support:

The index has been trading within a rising channel (highlighted in green).
Recent price action shows a rejection near 110.00, with a sharp pullback testing the lower boundary of the channel.

2️⃣ Moving Averages as Key Support:

50-day SMA (blue): Currently at 107.76, acting as dynamic support.
200-day SMA (red): Trending at 104.80, confirming a longer-term bullish structure.

3️⃣ Momentum Indicators Show Weakness:

RSI: At 47.53, below the neutral 50 level, indicating fading bullish momentum.
MACD: Slightly positive but showing signs of flattening, suggesting a potential slowdown in upside momentum.
What to Watch:

A break below 107.50 could accelerate selling pressure, leading to a deeper retracement.
Holding above the 50-day SMA may support a rebound attempt toward 110.00 resistance.

A confirmed breakout above 110.00 would reinforce bullish continuation, while failure to reclaim the highs may lead to further downside testing.

The U.S. Dollar Index remains within a bullish structure, but the recent rejection at resistance calls for caution. Traders should monitor price action around key support levels to gauge the next move.

-MW