US Dollar Index Price Analysis: DXY extends weekly gains, eyeing 93.00

• The US dollar index extends its weekly gains, accumulating 1%.
• Rising US bond yields supporting the greenback’s recent trend.
• A break above the 4-hour 200-SMA could push the DXY towards 93.00.

The US dollar index, which measures the greenback’s performance against six major currencies, is rallying for the third day in a row, last seen at 92.64, up 0.13%.

In the last three days, the DXY has rallied almost 1%. It has mainly benefited from rising US bond yields. However, the 10-year benchmark rate is down two basis points (bps), sitting at 1.355% at the time of writing.

DXY 4-hour chart

Although the daily chart supports the bullish bias, zooming into a shorter time frame depicts a brutal battle between the bulls and the bears. The greenback is trading near solid resistance at 92.78. That level has been tested unsuccessfully, suggesting that price is consolidating between the above-mentioned level and the 200-simple moving average (SMA) at 92.65.

A break above the 92.65-92.78 range could expose the following resistance at August swing high at 93.18. Once that level is cleared, the next supply level would be 93.72. 

On the flip side failure at the 200-SMA could exert downward pressure on the US dollar index. The first support would be the 50-SMA at 92.47. A break of the latter would push the DXY towards September’s swing lows around 92.10.

The Relative Strength Index is at 64.53, pointing lower, but still supporting an upside bias.