United States Dollar Index rises, remains supported near 101.00

The DXY trades near 101.00, supported by firm US Treasury yields and expectations that the Fed could keep monetary policy restrictive for longer.
US PCE inflation is the key upcoming catalyst, as a stronger reading could reinforce expectations of tighter policy, while softer data may trigger profit-taking in the Greenback.
Uncertainty around the Iran war adds support to the Greenback, with geopolitical risks keeping demand for safe-haven assets elevated.

Agustin Wazne FXStreet

The US Dollar Index (DXY), which measures the value of the Greenback against a basket of major currencies, is trading near the 101.00 area on Monday, up 0.26% on the day at the time of writing.

The US issued a temporary 60-day license allowing Iranian oil sales as part of ongoing peace negotiations, while Iran reportedly committed to allowing International Atomic Energy Agency (IAEA) nuclear inspectors and keeping the Strait of Hormuz open. Those developments pushed Oil prices lower and eased some fears of a wider supply shock, which can limit USD demand as a haven.

Market attention now turns to the upcoming US Personal Consumption Expenditures Price Index (PCE), the Fed’s preferred inflation gauge. A stronger-than-expected reading could reinforce expectations of tighter monetary policy and help the DXY retest the 101.00 area.

On the other hand, a softer PCE print could weigh on the Dollar and trigger some profit-taking, especially after the index’s recent advance toward yearly highs.

Short-term technical analysis:

On the 4-hour chart, Dollar Index Spot trades at 101.01, maintaining a bullish near-term bias as it holds above the 20-period Simple Moving Average (SMA) at 100.70 and the 100-period SMA at 99.81. The cluster of nearby horizontal supports around 100.99, 100.86 and 100.81 reinforces the constructive structure, while the Relative Strength Index (RSI) hovers near 69, suggesting strong but increasingly stretched upside momentum.

On the topside, immediate resistance emerges at 101.06, where a horizontal barrier caps the recent advance. On the downside, a break below the 100.99 pivot would expose the 100.86 and 100.81 support band, with the 20-period SMA at 100.70 offering additional backing ahead of the deeper 100-period SMA base near 99.81.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold consolidates gains around $4,100

Gold now surrenders part of its initial bull run, although it sticks to the $4,100 region per troy ounce on Thursday. The yellow metal extends it recovery on the back of the lacklustre performance of the US Dollar and declining US Treasury yields following the US midterms elections.

Bitcoin falls below $76,000 as NASDAQ drops 5% on AI sell-off

Bitcoin (BTC) and the wider crypto market fell on Thursday as US markets opened. Losses in AI-related stocks pushed the NASDAQ Composite (IXIC) down as much as 5% amid concerns that Democrats' control of both chambers of the US Congress could lead to tighter crypto and AI regulations.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.