US Dollar Index traders await inflation figures to gauge Fed policy direction and potential breakout above key resistance levels.
The US Dollar Index (DXY) remains below the 100.00 mark, trading with a modest positive bias for a third consecutive session. Investors are awaiting US consumer inflation data, which could influence the Federal Reserve’s policy path and provide directional momentum for the index.
The DXY has struggled to break above technical resistance, including the 200-period Exponential Moving Average and Fibonacci retracement levels. While the MACD indicator shows slight positive momentum, the Relative Strength Index hovers near 51, signaling limited bullish conviction. Elevated US Treasury yields and geopolitical risks continue to support the USD’s safe-haven appeal.
A sustained move above the 23.6% Fibonacci retracement level could open the door for further gains toward 100.26 and 100.53. Traders remain cautious, balancing inflation concerns against potential Fed rate adjustments.