US Dollar Index Price Forecast: Retreats from nearly 18-month highs around 102.50
- The US Dollar Index reached a nearly 18-month high of 102.53 on Monday.
- The 14-day Relative Strength Index at 76.30 signals overbought conditions.
- The primary support lies at the nine-day EMA of 101.49, aligned with the ascending wedge lower boundary.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after registering losses in the previous trading day and hovering around 102.20 after pulling back from nearly 18-month highs during the European hours on Monday. The DXY is maintaining a bullish near-term bias as price holds above both the nine-period and 50-period Exponential Moving Averages (EMAs). The alignment of the shorter EMA above the longer one reinforces an advancing trend.
The 14-day Relative Strength Index (RSI) at 76.30 signals overbought conditions, hinting that upside momentum is strong but increasingly stretched. The FXS Fed Sentiment Index near 137.58 suggests a still-supportive policy backdrop for the dollar, complementing the constructive technical picture.
Additionally, the technical analysis of the daily chart indicates that the dollar index is moving upwards within the ascending wedge pattern, suggesting that a temporary bullish continuation is underway, but a bearish reversal or correction may occur upon reaching the pattern's apex or breaking its lower support boundary.
The US Dollar Index may test a nearly 18-month high of 102.53, reached earlier in the Asian hours, aligned with the upper boundary of the ascending wedge.
On the downside, the initial support lies at the nine-day EMA of 101.49, aligned with the lower boundary of the ascending wedge. A break below the wedge would cause the bearish reversal and put downward pressure on the dollar index to test the 50-day EMA of 100.30. Further declines would expose the four-month low of 98.56, which was recorded on August 20.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.36% | 0.04% | -0.02% | -0.06% | -0.26% | 0.35% | 0.05% | |
| EUR | -0.36% | -0.28% | -0.34% | -0.38% | -0.43% | -0.04% | -0.27% | |
| GBP | -0.04% | 0.28% | -0.06% | -0.11% | -0.15% | 0.21% | 0.00% | |
| JPY | 0.02% | 0.34% | 0.06% | -0.06% | -0.16% | 0.27% | 0.07% | |
| CAD | 0.06% | 0.38% | 0.11% | 0.06% | -0.09% | 0.31% | 0.09% | |
| AUD | 0.26% | 0.43% | 0.15% | 0.16% | 0.09% | 0.37% | 0.17% | |
| NZD | -0.35% | 0.04% | -0.21% | -0.27% | -0.31% | -0.37% | -0.21% | |
| CHF | -0.05% | 0.27% | -0.01% | -0.07% | -0.09% | -0.17% | 0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
