Dollar index struggles in a narrow range; upside tendency in the long-term.
The dollar index has been consolidating after flirting with the one-and-a-half-year peaks at 97.50 in the previous week. In the short-term, sideways movement will likely continue as the technical indicators are flattening. The MACD stands below the trigger line with weak momentum, while the Relative Strength Index (RSI) hovers near the 50 level.
On the upside, the index could retest the previous highs of 97.50. A decisive close above this region could bring further buying interest into the market, pushing the price towards the 98.70 resistance level, taken from the inside swing bottom on March 26.
In case of the index edges lower, the 96.30 level could offer nearby support, which overlaps with the 50-day simple moving average (SMA). An extension below that line and therefore out of the channel would probably trigger further declines towards the 95.45 level and the 95.30 barrier, which is the 23.6% Fibonacci retracement level of the up-leg from 88.10 to 97.50.
Summarising, in the long-term view, the price is trending upwards, painting a positive picture.
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