Analyzing the U.S. Dollar Index $DXY

Trent Klarenbach from Klarenbach Research discusses the U.S. dollar index, known as the DXY, on October 9, 2024.

He highlights that the DXY is composed mainly of the euro and measures U.S. dollar strength against other currencies.

The weekly chart shows a sell-off starting in June, with the index not exceeding the 1.06 to 1.07 levels.

Support was found at the 200-week moving average, resulting in a rally, but the declining 50-week moving average poses resistance.

Trent recommends cautious trading as the index is in a 'no trade zone' between these averages, emphasizing historical support and resistance patterns at these levels.