Dollar Index price analysis: Rises above 94 for first since July 27
- The dollar index is breaking higher from its multi-week sideways channel.
- The index is yet to clear the six-month bearish trendline.
The dollar index (DXY), which tracks the safe-haven greenback's value against majors, is rising in Asia despite an uptick in the Asian stocks and overnight gains on Wall Street.
The DXY is currently seen at 94.16 – the highest level since July 27.
A close above 94 would imply a bullish breakout from the two-month-long consolidation of 92.00 to 94.00 and open the doors for 96.00 (target as per the measured move method).
On the way higher, the trendline falling from March and May highs could offer resistance. As of writing, that descending trendline hurdle is located at 94.70.
Should the index fail to hold above 94.00, stronger selling pressure will likely emerge, yielding a drop to 93.50.
Daily chart
Trend: Bullish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
