Dollar Index Tests Key Resistance After Fed's 25bp Hike
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The Federal Reserve's quarter-point hike to a 3.75%-4.0% range has pushed the Dollar Index into a tightening range against its 50-day moving average, a technical zone that has capped rallies twice this quarter.
Momentum readings are diverging: RSI sits in neutral territory near 55, while MACD histogram bars are flattening, suggesting indecision before the next directional break. A confirmed close above the recent swing high would open room toward the prior cycle top.
Failure to clear that resistance risks a retracement toward the rising trendline drawn from the last three higher lows, a level technical traders are watching as the first line of defense for dollar bulls.