US Dollar Index Price Analysis: Attempts To Retrace Its Recent Losses, Trades Near 102.20

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US Dollar Index struggles to halt losses amid dovish Fed’s outlook.

Technical indicators suggest that DXY could test the support region around the weekly low at 102.06.

The major level at 102.50 could act as a key barrier followed by the seven-day EMA at 102.58.

The US Dollar Index (DXY) rebounds after two days of losses, trading around 102.20 during the Asian session on Wednesday. However, the DXY faces challenges due to the Federal Reserve’s (Fed) dovish outlook on the interest rates trajectory. Investors expect the Fed to implement rate cuts in early 2024.However, during a Wednesday interview on Fox TV, Chicago Fed President Austan Goolsbee commented that the “market has gotten ahead of themselves on euphoria” regarding potential interest rate cuts.The 14-day Relative Strength Index (RSI) is below the 50 level, signaling a bearish sentiment. Additionally, the negative positioning of the Moving Average Convergence Divergence (MACD) line below the centerline, and showing the divergence below the signal line could serve as confirmation of the bearish momentum for the Dollar Index in the market.The lagging indicators suggest that the US Dollar Index could test the psychological support region around the weekly low at 102.06 level before the 102.00 level. A firm break below the key support region could put pressure on the DXY to navigate December’s low at 101.77 level followed by the 101.50 major level.On the upside, The DXY could find the key resistance around the 102.50 major level before the seven-day Exponential Moving Average (EMA) at 102.58 lined up with the weekly high at 102.63 level.A breakthrough above the resistance area could support the Dollar Index buyers to approach the psychological level at 103.00 near the 23.6% Fibonacci retracement at 103.08 level.Dollar Index: Daily ChartDOLLAR INDEX SPOT: ADDITIONAL TECHNICAL LEVELS

OVERVIEW Today last price 102.16 Today Daily Change 0.04 Today Daily Change % 0.04 Today daily open 102.12

 

TRENDS Daily SMA20 103.3 Daily SMA50 104.72 Daily SMA100 104.61 Daily SMA200 103.5

 

LEVELS Previous Daily High 102.63 Previous Daily Low 102.06 Previous Weekly High 104.27 Previous Weekly Low 101.77 Previous Monthly High 107.11 Previous Monthly Low 102.47 Daily Fibonacci 38.2% 102.28 Daily Fibonacci 61.8% 102.41 Daily Pivot Point S1 101.91 Daily Pivot Point S2 101.71 Daily Pivot Point S3 101.35 Daily Pivot Point R1 102.48 Daily Pivot Point R2 102.83 Daily Pivot Point R3 103.04

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