US Dollar Price Forecast: Sell-In-May Dynamic Could Drive DXY Higher

US DOLLAR INDEX (DXY) DAILY CHART – FALLING WEDGE BREAK TO TRIGGER FURTHER UPSIDE

US Dollar Price Forecast: Sell-in May Dynamic Could Drive DXY Higher

Chart prepared by Daniel Moss, created with Tradingview

From a technical perspective, the US Dollar Index (DXY) looks poised to extend recent gains, after the formation of a Bullish Engulfing candle validated the topside break of a bullish Falling Wedge pattern.

With a bullish crossover on the MACD indicator in play, and the RSI eyeing a push above its neutral midpoint, the path of least resistance seems higher.

A daily close above the 89-EMA (91.56) probably validates bullish potential and opens the door for buyers to drive the index back towards range resistance at 93.20 – 93.40.

However, if 91.50 successfully neutralizes buying pressure, a pullback to range support at 90.60 – 90.70 could be in the offing.

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