Dollar Index Technicals Flash Overbought Post-Fed Hike

The Dollar Index extended gains after the Fed delivered its rate hike to the 3.75%-4.0% range, but the rally has pushed RSI readings into overbought territory on the daily chart, a condition that historically precedes short-term consolidation or pullbacks. Price remains above its key moving averages, keeping the broader uptrend structurally intact despite the stretched momentum reading.

Traders are watching a prior resistance-turned-support zone as the first technical cushion on any retracement. A break below that shelf could trigger a deeper pullback toward the next moving-average confluence, while holding above it would keep the bullish structure alive. MACD remains positive but is flattening, suggesting momentum could be due for a pause even as the broader dollar trend stays constructive.