The U.S. Dollar Index has almost reached 99.20 on the 4-hour chart as it has recovered from the 98.56 low and gone back above the 50-EMA, which is at 99.16, although the price is still below the 100-EMA and is still below the descending trendline, so the bullish structure on a short-term basis is still not fully in play.

The 99.25 pivot level is an important zone. This is close to the 61.8% Fibonacci level and is at 99.25. If this level is broken and successfully held above it, then the extension of the bullish structure would bring the price to at least 99.48, where it would then extend to 99.68 and 99.99. The next significant level would be 100.38, beyond which there is a clear price extension. If the price is not able to hold above this level, then 99.12 and 98.99, 98.82 and 98.56 would be the next support levels.

The RSI at this point is at 57 and is showing a bullish bias for the recovery and price structure. In my opinion, this is a critical level for the U.S. Dollar Index from a price structure point of view. A confirmed break above 99.25 and the descending trendline would suggest that a bullish structure is more likely, and a move back toward 98.99 to 98.82, with price extending below the trendline is likely.

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