Dollar Index Chart Setup: MACD Crossover Looms Amid CPI Risk

Diesel prices at record highs are feeding directly into CPI calculations, and the Dollar Index chart is showing signs of an approaching inflection point. The MACD histogram has been compressing for several sessions, hinting at a crossover that traders often use as a momentum confirmation signal.

Price is hovering just above the 100-day moving average, a level that has repeatedly served as a springboard during past inflation-driven dollar rallies. A confirmed bullish MACD cross alongside a hold above this average would favor continuation toward the recent range high.

Conversely, failure to hold the moving average risks a slide toward the lower boundary of the multi-week range, keeping traders focused on this week's inflation print as the likely catalyst.