The US dollar index is edging higher towards the two-year high of 98.25 over the last three consecutive days, remaining well above the long-term ascending trend line and the moving averages. The short-term bias is tilted to the upside as the RSI indicator is turning marginally higher in the positive region, while the trigger line of the MACD oscillator is rising in the positive region.
If the index moves higher, the two-year high of 98.25 could attract traders’ attention once again and any violation above this hurdle could open the way for the 98.70 resistance, posting a higher high in the long term.
On the other hand, if the price posts a bearish retracement next support could come from the 50-day simple moving average (SMA) currently at 97.12 before touching the 96.85 hurdle. More losses could challenge the uptrend line, which overlaps with the 200-day SMA, currently at 96.18.
In the bigger picture, the dollar index has held in an upside tendency, however, looking at the very short-term, the price is trying to post a higher high confirming the ascending profile.
