US Dollar Tests Support – Breakout to Decide the Trend

The U.S. () is trading on the 4-hour timeframe near a key support zone after pulling back from its recent high around 101.50. So far, the index has managed to remain above the ascending trendline extending from the mid-July low. This price action suggests that the broader bullish trend has not yet lost momentum, but is instead undergoing a healthy corrective phase following a strong rally. In addition, the price’s proximity to the moving average reinforces the significance of the current support area, as holding above it could encourage buyers to retest nearby resistance levels.

The chart shows that the 101.15–101.20 zone represents a key pivot area, where it aligns with the ascending trendline, while momentum indicators are approaching oversold territory, increasing the likelihood of a technical rebound as long as the index remains above this level. However, if support is broken and the price closes below it, profit-taking could accelerate toward the 100.85 area, which marks the next corrective target and the most significant short-term support level.

In my view, the bullish scenario remains the more likely outcome as long as the index holds above 101.15. A breakout above the immediate resistance at 101.45 would confirm the resumption of the uptrend, opening the door for a retest of the recent high and potentially higher levels in the coming sessions. Market attention will remain firmly focused on the upcoming Federal Reserve meeting and key U.S. economic data, which are expected to be the decisive catalysts for the Dollar Index’s next directional move.

Support: 101.15 – 100.85 – 100.45
Resistance: 101.45 – 101.55 – 101.80.

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