US Dollar Index Technical Analysis: Chopping up the joint

The US Dollar Index (DXY) is back at it, testing the nerve of bigger hedge fund and institutional traders, while retail traders are being squeezed and stopped out again. It looks like this push-and-pull is not ending anytime soon until at least one of the major central banks will start to cut. Range trading is the right approach yet again with the US Dollar Index heading sideways and being trapped between 102.00 and 105.00 for another week.

That first pivotal level for the DXY comes in at 104.60, which was broken last week on Wednesday to the downside, though broken up again from below on Friday. Further up, 105.12 is the key point after the DXY failed to break that level last week. Once above there, 105.88 is the last resistance point before the Relative Strength Index (RSI) will trade in overbought levels. 

Support from the 200-day Simple Moving Average (SMA) at 103.82, the 100-day SMA at 103.43, and the 55-day SMA at 103.90 showed their importance last week on Wednesday. Further down, the 103.00 big figure looks to remain unchallenged for longer with ample support thus standing in the way