US Dollar Index Price Analysis: DXY approaches 20-day SMA near 92.50

• DXY edges higher on Friday following the previous session’s consolidative move.
• Multiple support formation near 91.90 provides floor to trade higher.
• Momentum oscillator holds onto the overbought zone.

US Dollar Index gathers momentum in the early European session on Friday. As of writing, DXY is trading at 92.30, up 0.08% for the day.

DXY daily chart

On the daily chart, after consolidating near the 91.80 level for the past four-session, DXY breaks 92.30 on Wednesday following the hawkish Fed official’s comment.

If price moves higher, it could test the 20-day Simple Moving Average (SMA) at 92.50 as the first upside target.

The Moving Average Convergence Divergence (MACD) indicator holds in the overbought zone. Any uptick in the MACD would intensify the buying opportunity toward the high of July 28 at 92.75.

Bulls would further be encouraged to test the 93.00 horizontal support level.

Alternatively, If it reverses the direction, then the first downside target is located at the low of 92.11.

A break of the 92.00 psychological level would mark another round of selling for the index.

Next, the market participant would like to aim for the 0.9175 and the 0.9150 horizontal support levels.

DXY additional levels