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US Dollar Index (DXY) Price Forecast: Testing resistance around 98.80

  • The USD Index appreciates further but remains capped below 98.80.
  • Investors await a slew of US economic releases for further insight into the Fed's easing plans.
  • Technical indicators reveal a strong US Dollar's bullish momentum.

The US Dollar Index (DXY) is trading higher at the start of 2026. The military intervention in Venezuela has failed to dent the Greenback's positive tone on Monday. Still, USD bulls need to breach resistance at the 98.80 area to confirm a trend shift, following a 2.5% depreciation from late November highs.

Last week, the positive US Pending Home Sales and Jobless Claims reports eased pressure on the US Federal Reserve to cut interest rates further, and investors are looking at a slew of key US macroeconomic releases this week, namely Friday’s Nonfarm Payrolls report, for further insight into the Fed’s rate path.

Technical Analysis: Further appreciation is in the cards

Chart Analysis Dollar Index Spot

The DXY, broke the downtrend channel from November 21 lows last week and is trading higher. The 4-hour chart shows the Dollar Index trades at 98.72 with the Moving Average Convergence Divergence (MACD) line extending above the signal line, both of them standing in positive territory. The Relative Strength Index (RSI) is at 66, underscoring the bullish momentum

Bulls are pushing through a key resistance area, at around 98.80, where the 38.2% Fiboinacci retracement of the November-December sell-off meets the December 19 high, and the December 4 low. Further up, the December 9 high, around 99.30, and the December 2 high, near 99.55, emerge as the next targets.

On the downside, immediate support is at Friday's top, of 98.50, ahead of Friday's low of 98.12 and the reverse trendline, now around 97.90.

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

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 Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.32%0.19%-0.02%0.37%0.30%0.32%0.42%
EUR-0.32%-0.12%-0.31%0.05%-0.02%0.00%0.10%
GBP-0.19%0.12%-0.21%0.18%0.11%0.12%0.23%
JPY0.02%0.31%0.21%0.39%0.31%0.33%0.44%
CAD-0.37%-0.05%-0.18%-0.39%-0.08%-0.06%0.05%
AUD-0.30%0.02%-0.11%-0.31%0.08%0.03%0.12%
NZD-0.32%-0.00%-0.12%-0.33%0.06%-0.03%0.10%
CHF-0.42%-0.10%-0.23%-0.44%-0.05%-0.12%-0.10%

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

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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