• US dollar index’s bullish gap still intact
• 200-day SMA looks to be tough support line
• Technical oscillators appear positive

The US dollar index declined considerably after the upward wave to the four-month peak of 105.30, but it failed to cover the gap that was created on Wednesday.

The RSI is above its 50 neutral mark, although weaker, and the stochastic oscillator is keeping its footing to the upside, both reflecting that buyers are still active.

Nevertheless, the pair has key levels underneath for protection against selling forces. The 20- and 200-day simple moving averages (SMAs) have been limiting downside movements at 103.85 and 103.60, respectively. If the bears take the lead, the index could plummet toward the 103.30 region ahead of the 50-day SMA at 102.20.

In the event of an uptrend resumption above the four-month high of 105.30, the bulls might take a breather near the 105.80 barrier before stretching toward the critical resistance line of 106.35, achieved on May 1.

In brief, dollar index buyers are holding back despite the latest bullish breakout. However, sellers are also unable to advance, as significant support levels continue to hold.