The rebound continues after sellers failed to break the 23.6 retracement level

The dollar index is now trading near the highs up by 0.2% on the day, with the greenback being the best performing major currency in trading so far. The turn of the tide came after sellers failed to sustain the recent downside momentum, with price unable to close below the 23.6 retracement level @ 93.81.

Dollar bulls came back into the picture and has continued to bid the dollar in trading today.

The dollar index now moves back above the 100-hour MA (red line) @ 94.26, and a hold above it means that buyers will be able to regain some near-term control while halting the downside bias since the double-top @ 95.53 was hit.

So, what's next?

For buyers, it's all about getting above the 200-hour MA (blue line) to re-establish a near-term bullish bias in order to re-test the highs this year. There's resistance seen @ 94.40 before the 200-hour MA @ 94.60 is tested so watch out for that. At the same time, keep an eye out on key dollar pairs as well.

EUR/USD continues to hold above the 100-hour MA in trading so far with the lows today seen at 1.1715 and buyers have leaned on that level for support currently. Same goes with GBP/USD with the 100-hour MA sitting at 1.3247 and the pair continues to hug the level in trading after the drop from 1.3290 levels earlier.

Any breaks or holds in those two pairs will play a part in the dollar index's movement as well, so be on the lookout.

As for dollar sellers, now it's about getting back below the 100-hour MA @ 94.26 and then breaking below the lows today near the 94.00 handle. Those are the two levels that price needs to stay below in order for a test of the 93.81 level to take place again.

There isn't much catalyst in trading today, so it will highly depend on the ebb and flow. Right now, that is favouring dollar bulls so if you're trading the other side of the page then make sure you define and limit your risk well via technical levels - the same actually applies even if you're a dollar bull.

It pays to be patient, not to be greedy.