The dollar index (DXY) is trading at $102.625, up slightly by 0.01%, but it is showing signs of weakness. The index recently fell below its previous sideways trading range of $103-103.315, indicating a change in sentiment.
It is now struggling to rise above the 23.6% Fibonacci retracement level acting as resistance. The important pivot point at $102,703 is crucial; a stay below it will suggest further downside.
Immediate support is at $102.166, with additional levels at $101.777 and $101.429. If the index rises above $102.703, we could see a return to a bullish bias.
EUR/USD Technical Forecast
The EUR/USD pair is trading at $1.09932, down 0.02%, but the outlook remains optimistic. On the 4-hour chart, the pair has formed a “three white soldiers” pattern, a sign of strong bullish momentum that started above the $1.09135 support level.
This support is reinforced by an uptrend line and the bullish bias is further supported by the 50 EMA at $1.09228 and the 200 EMA at $1.08670, both of which indicate a buying trend.
The immediate resistance to watch is at $1.10094, which might cap the upside, but as long as the pair stays above the $1.09722 pivot point, the uptrend remains intact.
