United States Dollar Index (DXY) Price Forecast: Consolidates near 99.50 ahead of Fed
- USD Index struggles to attract any meaningful buyers and remains close to a one-week trough.
- The US-Iran peace deal optimism undermines the safe-haven USD ahead of the Fed rate decision.
- The constructive technical setup warrants caution before positioning for any meaningful downfall.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, consolidates in a narrow band around mid-99.00s through the first half of the European session on Wednesday as traders opt to wait for the outcome of a two-day FOMC meeting. In the meantime, the optimism led by an interim US-Iran peace deal acts as a headwind for the safe-haven buck and keeps it close to a one-week low, touched on Monday.
From a technical perspective, the overnight close below the 23.6% Fibonacci retracement level of the May-June upswing favors bearish traders and backs the case for an extension of the USD's retracement slide from the highest level since late March. Apart from this, a slightly negative Moving Average Convergence Divergence (MACD) reading validates the outlook. However, the Relative Strength Index (RSI) around 53 suggests neutral-to-constructive momentum, hinting that dips may attract buyers.
Moreover, the DXY holds above the 200-day Exponential Moving Average (EMA), which coincides with the 50% retracement level, keeping a mild bullish bias while the broader structure remains supported. Hence, any further decline is more likely to find initial support at the 38.2% Fibonacci retracement at 99.27, ahead of the 200-day EMA near 99.09, with deeper Fibonacci floors lining up at 98.96 and 98.64 if corrective pressure extends.
On the topside, immediate resistance emerges at the 23.6% retracement around 99.67, with a break above this level exposing the recent swing high region near the 0.0% Fibonacci anchor at 100.30.
(The technical analysis of this story was written with the help of an AI tool.)
DXY daily chart
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.26% | -0.05% | 0.02% | 0.05% | -0.29% | 0.11% | -0.65% | |
| EUR | 0.26% | 0.18% | 0.30% | 0.30% | -0.05% | 0.36% | -0.40% | |
| GBP | 0.05% | -0.18% | -0.09% | 0.12% | -0.24% | 0.18% | -0.58% | |
| JPY | -0.02% | -0.30% | 0.09% | 0.00% | -0.31% | 0.13% | -0.68% | |
| CAD | -0.05% | -0.30% | -0.12% | -0.01% | -0.35% | 0.12% | -0.69% | |
| AUD | 0.29% | 0.05% | 0.24% | 0.31% | 0.35% | 0.41% | -0.35% | |
| NZD | -0.11% | -0.36% | -0.18% | -0.13% | -0.12% | -0.41% | -0.76% | |
| CHF | 0.65% | 0.40% | 0.58% | 0.68% | 0.69% | 0.35% | 0.76% |
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
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
