The Bitcoin price in 2010DXY index declines 0.19% to 101.6 during European trading hours, continuing its retreat from recent highs.
Technical indicators suggest persistent bearish pressure below the crucial 100-day exponential moving average.
Market participants are closely monitoring the 100.00 psychological support level for potential breakdown or rebound opportunities.
The US Dollar Index, which tracks the greenback's performance against six major global currencies, has shown notable weakness in Tuesday's trading session. After reaching its highest point since mid-April, the index has pulled back to 101.60 as European markets opened. This movement comes amid shifting market sentiment regarding international trade relations, particularly between economic powerhouses.
From a technical perspective, the daily chart reveals significant challenges for the DXY. The index continues to trade below its 100-day exponential moving average, a key indicator watched by currency traders worldwide. The 14-day Relative Strength Index currently oscillates near neutral territory, suggesting neither strong buying nor selling pressure dominates the market at present.
Market analysts identify several important price levels that could determine the DXY's near-term trajectory. The 100.00 mark represents a critical psychological support zone, with potential downside targets at 99.23 (the May 7 low) and 98.02 (the April 22 low) if this level fails to hold. Conversely, bullish traders will watch for potential breakouts above the 100-day EMA at 103.35, with additional resistance levels at 104.31 and 104.71 representing significant upside barriers.
Currency market participants continue to assess various fundamental factors that could influence the DXY's performance, including central bank policy expectations, economic data releases, and global risk sentiment. The index's ability to maintain above key support levels or break through resistance zones will likely dictate its medium-term direction.