Currently, the DXY is trading at the 99.14 area on the 4-hour chart as it rebounded from the 98.56 area. The DXY has recovered from the lower levels, however, it remains below the 100-EMA at the 99.45 area and is still contained within the descending trendline in the area of the 99.15 area. Thus, the overall structure remains bearish despite the recovery.
The RSI is currently at the 56 area. This shows that the price has recovered some value, however, resistance is currently located at 99.12 – 99.26, which is followed by resistance at the 99.48 area, the 99.69 area and the 99.99 area. The first area of support is located at 98.99, followed by the 98.82 area, the 98.56 area and the 98.33 area.
According to my analysis, the DXY is attempting to form a corrective rebound. This rebound will remain contained below the areas of 99.26 and 99.48. A break above these areas would allow the price to retest the 99.69 area. If the DXY begins trading below the descending trendline, then the price would likely retest the 98.82 and 98.56 areas.
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