Search ForexCrunch
  • The inverse head-and-shoulders pattern is lifting the market.
  • The upside target can be located near the 98.20 level.
 

DXY daily chart

 
The US dollar index (DXY) is challenging the 100-day simple moving average (SMA) while trading within a bullish channel. 
 

DXY four-hour chart

 
DXY is trading above the main simple moving averages (SMAs) and a bullish trendline, suggesting a constructive bias in the medium term. The greenback is breaking out from an inverted head-and-shoulders formation which is lifting the market above the 97.85 resistance and potentially targetting the 98.20 level on the way up. 
 

Additional key levels