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US Dollar Index Price Analysis: DXY easing from January highs, bullish potential remains, 97.85 target

  • DXY is trading withing an inverse head-and-shoulder pattern with potential bullish implications. 
  • Bullish targets can be seen near 97.85 and 98.20 levels.
 

DXY daily chart

 
The US Dollar Index (DXY) is easing from the January highs, a descending trendline originating from October 2019 and the 200-day simple moving average (SMA). The greenback is also trading within a bullish channel with a wedged-shaped.
 
 

DXY four-hour chart

 
DXY is evolving above the main simple moving averages (SMAs) and a rising trendline, suggesting a bullish momentum. The market is also in an inverted head-and-shoulder structure therefore it should remain bullish while above the right shoulder and 97.20/10 support zone. If bulls show some conviction they can target 97.85 and 98.20 to the upside. 
 

Additional key levels 

 

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