DXY Forecast: 20-Day EMA Holds Bullish Despite Minor USD Weakness

The US Dollar Index (DXY) experienced modest selling pressure during Tuesday's European session, driven by renewed optimism over a potential agreement involving the United States. However, technical indicators remain constructive.

Key support comes from the 20-day exponential moving average (EMA), which continues to trend higher, reinforcing a bullish near-term outlook for the greenback. The combination of a slight profit-taking on deal hopes and a firm EMA structure suggests the dip may be limited.

Traders are watching for further developments on the US-led deal while relying on the EMA as a dynamic floor for long positions.