DXY eyes key resistance at 99/99.40 after trendline rebound – Scotiabank

The Dollar Index is staging a recovery after defending its long-term uptrend near 96.40. A higher low at 97.10 and bullish MACD divergence point to fading downside momentum, with focus now shifting to key resistance near 99/99.40, Standard Chartered's economist report.

DXY bounce targets September 2024 lows

"The Dollar Index has rebounded after testing its multiyear ascending trend line at 96.40. It recently established a higher trough at 97.10 and moved above the 50-DMA. A positive divergence on the daily MACD indicates diminishing downward momentum."

"The index is approaching the June peak at 99/99.40, which may serve as interim hurdle. A break above this could trigger an extended rebound toward September 2024 low of 100.90 and 102. In the near term, the recent higher low at 97.10 serves as key support."