Dollar Index DXY Firmly Holds 200-Day Moving Average, Bullish Technical Signals Confirmed

The Dollar Index (DXY) has recently demonstrated strong resilience, consistently trading above the 99.00 level and currently fluctuating between 99.20 and 99.60, firmly holding above the critical 200-day Exponential Moving Average (EMA). This moving average, currently around 98.80, serves as a crucial technical foundation supporting upward price movement. Concurrently, the 50-day EMA and 200-day EMA are gradually converging, potentially forming a technically significant "golden cross" pattern, further reinforcing the sustainability of the bullish trend. Regarding technical indicators, the Relative Strength Index (RSI) remains stable in the 55-65 range, indicating healthy market momentum without entering overbought territory. The MACD histogram continues to be above the zero line and is expanding, reflecting accumulating upward pressure. Trading volume data shows that institutional funds are consistently entering the market at the 99.00 key support level, indicating a growing consensus on the strength of the dollar. From a fundamental perspective, the Federal Reserve's relatively tight monetary policy stance is a core factor supporting the dollar's strength. Recent U.S. employment data has been robust, and service sector inflation remains sticky. The market widely expects the Federal Reserve to maintain high interest rates, contrasting sharply with the more accommodative policies of the European Central Bank and the Bank of Japan, thereby increasing the relative attractiveness of dollar assets. Furthermore, during periods of heightened global geopolitical risks or increased financial market volatility, the dollar, as a traditional safe-haven asset, often attracts capital inflows into U.S. Treasury bonds and dollar assets, further providing underlying support for the DXY. Compared to other major economies, the U.S. economy exhibits greater resilience, which also, to some extent, solidifies the dollar's status as a global reserve currency.