The DXY, which monitors the performance of the USD against six major currencies, is currently trading at around 101.00 on Friday. This comes after a University of Michigan Consumer Sentiment survey showed weaker results than expected, contributing to a week of mixed economic data in the US. The survey revealed a decrease in household confidence, while inflation expectations have risen, indicating an uncertain future for the US economy. In addition, President Trump’s fluctuating tariff plans and unclear trade policy continue to have a negative impact on market sentiment. However, despite these factors, the DXY has managed to maintain its gains for the week as traders process the decline in risk appetite and prepare for potential signals from the Federal Reserve (Fed).
At present, the DXY has made modest gains and is trading close to 101.00, near the higher end of its daily range between 100.52 and 101.14. The Relative Strength Index (RSI) remains in the neutral zone at 50, suggesting a balanced momentum. The Moving Average Convergence Divergence (MACD) indicates a slight bullish crossover, while the Average Directional Index (14) shows weak trend strength in the 30s range. The Ultimate Oscillator trades in the 60s, and the Bull Bear Power hovers around zero, reinforcing the indecisive market sentiment. The 20-day Simple Moving Average (SMA) is signaling a short-term buying opportunity, but the 100-day and 200-day SMAs continue to show a bearish trend. In terms of support and resistance levels, there is potential at 100.93, 100.67, and 100.61 for support and at 101.16, 101.75, and 101.82 for resistance. Overall, the DXY presents a neutral outlook with a slight upward bias.