US Dollar Index hits key support
The Dollar Basket has come into a rare cluster of simple moving averages support, with the 50-, 100-, and 200- all congregating in a very tight range between 9593 and 9597. All three of these moving averages have been notable in the past and thus the bounce we are currently seeing should not come as a surprise.
With the stochastic and MACD histogram rolling over in a bullish manner, a move higher seems likely. The key resistance level to watch out for is at 96.26 which needs to be broken to lead us to a stronger move higher. The inability to regain that level would simply make any bounce look like a short-term phenomenon, and would point towards a move to the double-top neckline of 95.58.