Dollar Index Price Forecast: DXY falling within channel

Source Fxstreet
  • The US Dollar Index has been trading in a rising channel for several months. 
  • After touching the top of the channel it reversed course and started to fall towards the lower channel line. 
  • Price is close to support and the RSI is oversold signaling a likely pause in the downmove. 

The US Dollar Index price (DXY) is declining within a multi-month long rising channel after touching the top borderline and rolling over. 

Given price tends to oscillate within a channel the Dollar Index is probably in the midst of a down-leg which means there is a good chance it could continue falling to the lower borderline before probably bouncing and resuming its trend higher.

Dollar Index 4-hour Chart

Dollar Index price is now falling close to a sturdy support level at 104.97 composed of several old peaks occurring at that height. The green 200 Simple Moving Average (SMA) also lies close at 105.09 and will probably offer support.

The probability price could find a floor is increased by the fact that the Relative Strength Index (RSI) is potentially signaling oversold – depending on the close of the current bar. If it does, then this will indicate a higher chance price could find a floor and consolidate. When RSI enters oversold it is a signal for traders not to add to their short positions. 

A decisive break below the support level at 104.97 would signal a continuation down to a possible target at the lower channel line, at that point, in the vicinity of 104.00.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver spikes up to $36.50 with markets turning cautiousSilver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
Author  FXStreet
13 hours ago
Silver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
placeholder
EUR/GBP keeps the red above mid-0.8500s after Eurozone inflation dataThe EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
Author  FXStreet
13 hours ago
The EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
placeholder
Dollar Endures Worst Half in Decades: What's Next for 2025?The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
Author  Insights
13 hours ago
The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
placeholder
XRP, ETH Traders Getting Greedy? Funding Rates Highest Among Top CoinsData shows XRP and Ethereum top the Funding Rate charts among the major cryptocurrencies, a sign of growing demand for long positions.
Author  Bitcoinist
13 hours ago
Data shows XRP and Ethereum top the Funding Rate charts among the major cryptocurrencies, a sign of growing demand for long positions.
placeholder
Bitcoin Price Forecast: BTC slips below $107,000 even as exchange reserves hit 6-year low Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Author  FXStreet
14 hours ago
Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Related Instrument
goTop
quote