FX.co ★ U.S. Dollar Index (USDX) in Forex Trading

#USDX Timeframe H4 Based on the #USDX H4 timeframe chart, the current structure indicates a still-strong bullish trend. This is evident from the price moving above the 100-period and 200-period Moving Averages. Furthermore, the slopes of both moving averages are also starting to point upward, indicating that the upward momentum established since mid-May is still well maintained. The 100-period moving average (MA100) positioning above the 200-period moving average (MA200) further reinforces the indication that the medium- to long-term trend is still dominated by buyers, so any corrections thus far can still be categorized as retracements within the larger uptrend. Price movement showed a significant bullish acceleration in early June when the dollar index broke through a key resistance area around 99.65. This breakout triggered a fairly aggressive price surge that reached the 100.05–100.10 area. After reaching this level, the price did not immediately experience a sharp reversal, but instead moved in a narrow consolidation phase near the peak. This pattern generally indicates continued accumulation or a gathering of strength before the market determines its next direction. The fact that the price is still holding near its highest level indicates that selling pressure remains relatively limited. In terms of horizontal support, the 99.65 area is a crucial level to watch. This level previously served as resistance, which was then successfully broken through and now has the potential to transform into new support. As long as the price can hold above this area, the bullish bias remains dominant. If a deeper correction occurs, the next support level is around 98.72, close to the 200-day moving average (MA) and the previous swing low. This zone could provide strong resistance for buyers as it is the intersection of horizontal support and intermediate-trend support. Below it lies support at 98.39, a crucial boundary maintaining the higher low structure that has formed since mid-May. If this level is broken, the opportunity for a larger correction towards the 98.02 area or even 97.60 area will increase.

Meanwhile, in terms of resistance, the 100.05 to 100.18 area is the main obstacle currently being tested by the price. Several attempts to break through this area have met with selling pressure, forming a consolidation below the resistance. If buyers are able to push the price through and consistently close H4 candles above 100.18, it would signal renewed bullish momentum. In this scenario, the dollar index could potentially continue its upward movement towards a higher psychological level above 100.30, opening the possibility of forming a new peak in the medium term. The price's relationship to the 100- and 200-day moving averages (MA100) also provides a constructive picture. Currently, the price is moving significantly above both moving averages, indicating a healthy trend. While this could potentially trigger a technical correction due to short-term overbought conditions, as long as the correction remains above the 100-day moving average and does not break through the 200-day moving average, the underlying trend remains bullish. Many market participants typically use corrections towards the moving average area as an opportunity to re-enter following the dominant trend. Overall, technical analysis of the USDX on the H4 timeframe remains positive. The higher-high-low structure is intact, the price is above the 100- and 200-day moving averages, and the key support level at 99.65 remains supportive. As long as this area is not significantly breached, the opportunity for an increase towards the 100.18 resistance level remains open. A break above this resistance level would strengthen the bullish signal and open up room for further appreciation. Conversely, failure to hold above 99.65 could trigger a correction towards 98.72 or even 98.39 before the uptrend attempts to resume. Thus, the primary bias for the next few sessions remains bullish, although the market is likely to experience some short-term volatility and consolidation around the current resistance area.