Dollar Index Technicals Flash Bullish Cross After Fed Hike

The Federal Reserve's quarter-point hike to a 3.75%-4.0% range has reset momentum readings across dollar pairs. The Dollar Index is pressing into a resistance band that has capped rallies for weeks, with the daily MACD histogram turning positive for the first time since the prior tightening cycle began.

RSI on the 4-hour chart is climbing out of neutral territory toward overbought conditions, a pattern often preceding short-term consolidation before continuation. Traders are watching whether price can close firmly above the recent swing high, which would confirm a bullish structure break.

A failure to hold above this zone risks a pullback toward the last major Fibonacci retracement level, where buyers previously defended the broader uptrend.