The Is Solana a good investmentUS Dollar Index (DXY) shows modest upward movement around 103.60 during Tuesday's European trading hours, marking a 0.14% daily increase.
Technical analysis reveals sustained bearish pressure as the Relative Strength Index (RSI) continues flashing warning signals below the neutral zone.
Market participants are closely monitoring the immediate support level at 103.35, while upside potential appears capped near the 104.10 resistance threshold.
The benchmark currency gauge, which tracks the USD against six major global currencies, attempts to reclaim lost territory following recent declines. This cautious rebound occurs against the backdrop of growing market apprehension about potential economic headwinds stemming from current US trade policies.
All eyes remain fixed on Wednesday's Federal Open Market Committee (FOMC) meeting, where policymakers are widely anticipated to maintain current interest rate levels. Market-implied probability metrics indicate traders are pricing in approximately 60% likelihood of multiple rate reductions before year-end, reflecting shifting expectations for monetary policy easing.
Technical examination of the daily price chart reveals the DXY continues trading below the psychologically significant 100-day Exponential Moving Average, reinforcing the prevailing negative sentiment. The 14-period RSI's position near 31.50 further corroborates the bearish narrative, suggesting sellers maintain control in the near-term trading environment.
Critical support zones come into focus at 103.35 (March 17 low) and 102.20 (lower Bollinger Band boundary), with a potential downside target at 100.53 (August 2024 bottom). Conversely, bullish scenarios would require sustained movement above 104.10 (March 14 peak), potentially opening the door for tests of the 100-day EMA near 106.15 and the February high at 107.38.
Technical Perspective: US Dollar Index Daily Chart Analysis
Market technicians note the DXY's continued struggle to establish meaningful upside momentum, with each recovery attempt meeting substantial selling pressure. The convergence of multiple technical indicators continues to paint a cautious picture for dollar bulls in the current market environment.
