On Friday, the US Dollar Index (DXY), a measure of the USD against six major currencies, saw a small increase to around 101.00, following a week of mixed economic data from the US. The University of Michigan Consumer Sentiment survey showed a decrease in household confidence and a spike in inflation expectations, painting a murky picture for the US economy. The uncertainty surrounding President Trump’s tariff plans and trade policy has also affected market sentiment. Despite this, the DXY is still up for the week, as traders adjust to a decrease in risk appetite and await further signals from the Federal Reserve (Fed).
The DXY’s current trades are near the upper end of its range for the day, moving between 100.52 and 101.14. The Relative Strength Index (RSI) indicates a neutral momentum in the 50s, while the Moving Average Convergence Divergence (MACD) shows a slight bullish crossover. The Average Directional Index (14) is in the 30s, reflecting a weak trend strength. The Ultimate Oscillator is also in the 60s, and Bull Bear Power remains close to zero, indicating an indecisive market sentiment. The 20-day SMA signals a brief buying opportunity, but the 100-day and 200-day SMAs suggest a bearish trend. Key support levels are at 100.93, 100.67, and 100.61, and resistance levels are at 101.16, 101.75, and 101.82. Overall, the DXY appears to have a neutral outlook with a slight upward trend.