DXY: Strong support level at 103.5

19 Mar 2023

The dollar index is moving sideways on the daily timeframe, so we don't expect significant movement unless it breaks out of its range. To determine this, we look at the 4-hour timeframe where we see the index is in a downtrend channel until it reaches a strong support level at 103.5. This level also coincides with the daily 50 moving average, Fibonacci 38.20, and an ascending yearly trendline. It will be closely watched in the coming days as it's likely to bounce upwards towards the upper edge of the local uptrend channel. However, if it successfully breaks the yearly trendline, Fibonacci level, and moving average, it will likely drop to the next support level at 102.5.

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