US Dollar Index Weakens to 101.00, Holds Bullish Tone Above 100-day SMA

The US Dollar Index (DXY) weakened to around 101.00 in early European trading on Thursday, pulled lower by an improvement in risk appetite. Despite the decline, the index retains a bullish tone as it continues to hold above the key 100-day simple moving average. The 100-day SMA remains a crucial support level, and as long as DXY stays above it, the broader uptrend is intact.

Traders are monitoring price action to determine whether the current pullback is a temporary correction within the larger bullish trend or a potential reversal. The index's ability to sustain above the SMA will be key in the near term.