US Dollar Index declines and remains under pressure

DOLLAR INDEX

The US Dollar Index is trading above the support zone of 103.50. If prices remain stable above this level, it is likely that the index will rise and retest the resistance zone at 105.50. However, this scenario would be invalidated if the mentioned support zone is broken to the downside during today’s trading.

The US Dollar Index (DXY) has seen a significant rise in its performance, reflecting the continued relative strength of the US dollar despite global economic fluctuations. This increase can be attributed to several factors, most notably the improvement in US economic data, along with market expectations that the Federal Reserve may adopt a more hawkish monetary policy in the near future, enhancing the appeal of the dollar as a safe-haven asset for investors.

From a technical perspective, the index has broken through a key level at 105.00, opening the door for further gains in the short term. If this trend continues, the index may reach new higher levels targeting 107.00-108.00.

Based on these factors, it appears that the US dollar is in a strong position to maintain its strength, particularly as the market awaits further signals from the Federal Reserve regarding its future policy decisions.

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