The US Dollar Index is trading near 103.04 on the 4-hour chart after breaking above the 102.83 zone, the pivot point, a level calculated from the previous period’s high, low and close that traders use to judge direction. That zone capped the index in mid-October. A rising trendline, a line connecting higher lows since early November, supports the move, and both moving averages, which track average prices over time, are below price.

Resistance, where sellers may return, is 103.15, then 103.46. Support, where buyers may step in, is 102.83, then 102.53. RSI, a 0 to 100 gauge of buying and selling strength, is near 75, which is overbought, meaning prices rose very fast, so a pause would not surprise me. I stay bullish while DXY holds 102.83. A close above 103.15 would open 103.46.

EUR/USD Technical Analysis: Euro Breaks Below 1.1098 as 1.1056 Comes Into Focus