The US Dollar Index (DXY) is consolidating around 98.40 in Asian trading on Friday after two straight sessions of gains. Technical signals on the daily chart suggest the index remains in an ascending channel, keeping the broader bullish bias intact.
Bullish momentum intact
The DXY is holding above both the nine- and 50-day Exponential Moving Averages (EMAs), reinforcing the short- and medium-term bullish trend. Meanwhile, the 14-day Relative Strength Index (RSI) is above the 50 mark, signaling continued upward momentum.
Key resistance levels
On the upside, the first hurdle for the DXY sits near the channel’s upper boundary at 98.80. A breakout would open the way toward the eight-week high of 99.07, last seen on August 5. Further strength could push the index toward the four-month peak of 100.26, recorded on August 1.
Support levels to watch
Initial support is aligned with the 50-day EMA at 98.00, followed by the nine-day EMA at 97.81 and the channel’s lower boundary at 97.50. A decisive break below this zone would weaken the bullish outlook and expose the September 17 low of 96.22, the weakest level since February 2022.
