Dollar Index - Pattern Is Increasingly Looking Like A Bottom

The Dollar Index (DXY) witnessed a strong rebound from the 50-day MA yesterday, strengthening the appeal of what looks increasingly likely a bottom. The index closed above 94.00 level yesterday and is currently struggling to hold above the psychological level.

Daily chart

Last Wednesday's long-legged doji candle rightfully indicated that the decline from the Nov. 7 high of 95.15 has run out of steam. In the subsequent days, the dips to the 50-day MA and the 100-day MA have been short-lived.

Also, the 50-day MA and the 100-day MA are converging in a USD bullish manner. The 5-day MA and the 10-day MA have shed bearish bias as well. Further, the index continues to defend the ascending trendline.

Still, I would like to see a move above 94.67 (trendline sloping lower from Mar. 9 high and Apr. 10 high) to confirm a rally to 96.00 (trendline sloping lower from Jan. 3 high and Mar. 9 high).

Bearish scenario - Only an end of the day close below 93.40 would abort the bullish view.