US Dollar Attempts Breakout as Bulls Step Back In

The US dollar is trying to move higher again in the short term. The price is moving inside a bullish channel. If the DXY breaks above 100.50, the next targets could be 101 and 102.40. Support is near 98.65 and 98.33. A drop below 98.24 would weaken the bullish setup.

However, the bigger picture is still cautious. The weekly chart suggests the dollar may still be in a larger downtrend that started after the 2022 high; RSI is near overbought levels, and this current rise could only be a temporary move. If that happens, the dollar could fall below 94 later this year.

Overall, the dollar looks stronger in the short term, but the longer-term direction is still uncertain.

DXY Daily Chart