- The American dollar index regains the lost base to almost 103.50 in the early European session.
- DXY maintains a negative perspective below 100-day EMA from RSI Bears.
- The first target in the minus, which to watch is 103.20; A direct barrier of pros is observable at 104.10.
The American dollar index (DXY), the American dollar value indicator (USD) measured in relation to the basket of six world currencies, trades in positive territory nearly 103.50 during the early European session on Thursday.
However, the advantage of DXY may be circumscribed because the Federal Reserve (FED) indicated that the interest rate reductions were probably this year. In addition, FED officials have reduced their economic growth forecast and changed both its inflation forecast and unemployment.
According to Daily, the DXY bearing is intact, with the index to remain below the key 100-day interpretation average (EMA). Subsequent declines look positive as a 14-day relative strength (RSI) indicator, which stands below the central line near 31.75.
The initial level of support for the USD index is at level 103.20, the lowest on March 18. The detained trade below the above level may reveal 101.88, the lower border of the Bollinger band. A violation of this level may occur to 100.53, the lowest August 28, 2024.
On the other hand, the highest level of March 14 to 104.10 acts as a direct level of resistance for DXY. An additional Plus filter to be viewed is 105.45, the highest on November 6, 2024. The key plus barrier is observable at 106.00, representing 100-day EMA and psychological level.
