The dollar index has shown resilience these past two weeks, defying initial expectations of a slide into February similar to 2018. What caught many off guard was the weekly close positioning itself above the 20-week moving average. That's a critical technical support zone. Now here's where it gets interesting: if the index manages to punch through the November high at 100.39, we could be looking at a significant shift in the broader market structure. Should that breakout materialize, the September low would likely establish itself as a 3-year support foundation. The price action right now is basically at an inflection point—a break above 100.39 would signal sustained dollar strength, while a failure could mean another test of key support levels. For macro traders and crypto participants watching cross-asset correlations, this DXY movement deserves close attention.
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The dollar index has shown resilience these past two weeks, defying initial expectations of a slide into February similar to 2018. What caught many off guard was the weekly close positioning itself above the 20-week moving average. That's a critical technical support zone. Now here's where it gets interesting: if the index manages to punch through the November high at 100.39, we could be looking at a significant shift in the broader market structure. Should that breakout materialize, the September low would likely establish itself as a 3-year support foundation. The price action right now is basically at an inflection point—a break above 100.39 would signal sustained dollar strength, while a failure could mean another test of key support levels. For macro traders and crypto participants watching cross-asset correlations, this DXY movement deserves close attention.