The DXY moves closer to its falling 100 day moving average

The flow of funds today is favoring the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term as investors seek safety amid market turbulence. However, from a technical perspective, the price has encountered a key resistance level Resistance Level A trading resistance or resistance level reflects a given price that acts as a temporary ceiling for an asset. In its most basic form, this level pressures an asset’s price from rising above it, either acting as an outright barrier or exerting pressure in doing so.This pressure is due to a growing number of sellers who wish to sell at the particular price at a defined resistance level. Resistance levels can either be temporary constructs, longer-lasting ones, or purely psychological. As a result A trading resistance or resistance level reflects a given price that acts as a temporary ceiling for an asset. In its most basic form, this level pressures an asset’s price from rising above it, either acting as an outright barrier or exerting pressure in doing so.This pressure is due to a growing number of sellers who wish to sell at the particular price at a defined resistance level. Resistance levels can either be temporary constructs, longer-lasting ones, or purely psychological. As a result Read this Term and is experiencing some selling pressure. Examining the DXY daily chart, the high price today reached 1.0500, just above the falling 100-day moving average of 1.0495. A sustained move above the 100-day moving average with momentum is needed to strengthen the bullish bias.

It's worth noting that last week, the price surpassed the 100-day moving average, reaching its highest level since November 30th. The high price hit 105.883, and the index closed above the 100-day moving average for three consecutive days. However, Friday witnessed a sharp decline, with the price dropping to a low of 103.484. Yesterday's low reached 103.497, while today's low hit 103.443 before rebounding upward.

A move above the 100-day moving average (blue line in the chart above) is required to strengthen the bullish bias. Traders would then focus on the February swing high at 105.359 and the March high at 105.883 as the next key targets. The 38.2% retracement of the decline from the late September 2022 high intersects at 106.152, while the 200-day moving average is positioned at 106.644. Conversely, if the price remains below the 100-day moving average, buyers may shift back to selling.