The US Dollar index (DXY, DX-Y.NYB) started its meteoric rise in June, 2021.
On June 17th, 2021, the index began respecting its 92-day SMA body support line and its 104-day SMA wick support line.
Since then and for over 16 months now, the index has been strengthening non-stop, and the ramifications are felt on a global level.
Macroeconomics and political dynamics may start pressuring the index down.
Looking at the index chart overlaid with its best respected moving average support lines reveals where the point of encounter may be:
Zooming in:
The US Dollar index has been riding this wave for a long time now, and it will be very interesting to see how it behaves when it gets closer to the support lines.
In the last 16 months, these support lines held the index. Will they be successful when the next encounter takes place?
We’ll be here to watch.