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The US Dollar Index (DXY) is currently trading at 98.76, posting a strong rebound from recent lows near 96.50 and climbing back above both the 15-day (red) and 20-day (green) moving averages. This marks a notable shift in short-term momentum and suggests the potential formation of a bullish reversal structure after a prolonged downtrend that began in early 2025.
The recent bullish breakout above the 98.28–98.46 moving average zone confirms short-term buying strength, especially as price holds steady near the session high of 98.80.
Key Technical Observations:
- The 15-day and 20-day SMAs have now begun turning upward, indicating improving momentum.
- Price is consolidating just under the psychological level of 100.00, which may act as a short-term resistance zone.
- The prior downtrend has likely bottomed out near 96.50, forming a potential higher low.
Key Levels:
- Immediate Resistance: 99.50–100.00
- Next (LON:NXT) Resistance: 101.30 (March swing high)
- Support: 98.30 (MA zone)
- Breakdown Support: 96.50
Bias: Bullish Reversal in Progress
As long as price remains above 98.30, the technical structure favors further upside. A breakout above 100.00 could open the path toward 101.30, confirming a medium-term trend reversal. However, failure to hold above the moving averages may lead to a retest of 96.50.
Retail traders should watch for bullish continuation patterns or a consolidation breakout above 99.50 to confirm strength in the US Dollar across major pairs. This move is also consistent with the current pressure seen in EUR/USD and the broader recovery in USD/ZAR.