U.S. Dollar Index (DXY) Technical Analysis – 4-Hour Timeframe

U.S. Dollar Index (DXY) Technical Analysis – 4-Hour Timeframe

Following yesterday’s economic data from the United States, which included stronger-than-expected GDP growth and consumer confidence figures, the U.S. Dollar Index (DXY) has continued its upward trend with strength. These developments have reinforced expectations for continued monetary tightening—or at least keeping interest rates elevated—which in turn has boosted demand for the dollar.

On the 4-hour chart, after a strong bullish rally, the dollar index has now reached a key resistance zone that previously acted as a major barrier.

Bullish Scenario:
If the current resistance zone is decisively broken and price stabilizes above it, the bullish momentum could extend further toward higher technical levels. This scenario would gain additional strength if upcoming economic data continues to support the dollar.

Bearish Scenario:
However, if the price fails to break through the resistance and signs of buyer weakness begin to emerge, a corrective pullback toward previous support levels may occur. This scenario could be further intensified if weaker economic data is released or if the Federal Reserve signals a more dovish stance.

At the moment, traders are advised to closely monitor the price reaction to the current zone and wait for confirmation before committing to the next move.