US Dollar Index Price Forecast: Bears eye two-month lows around 99.40
- The US Dollar edges lower for the second consecutive day after failing to regain the 100.00 level.
- Hopes of a negotiated end to Iran's war and dwindling bets of immediate Fed rate hikes are weighing on the Greenback.
- The US Dollar has key support levels in the lower range of the 99.00s.
The US Dollar Index (DXY) edges lower for the second consecutive day on Wednesday, after failing to consolidate above the 100.00 level on Monday. The DXY is struggling as hopes of a negotiated end to the Iran war feed a moderate risk appetite, while lower Oil prices are prompting investors to dial down bets of immediate Federal Reserve (Fed) rate hikes.
US macroeconomic data released on Tuesday failed to support the US Dollar as JOLTS Job Openings declined to 7.359 million in June, below market expectations of 7.4 million, from the downwardly revised 7.537 million in May. At the same time, Factory Orders for June showed a 0.3% contraction in June, missing expectations of a 0.2% increase, following a 1.3% decline in May.
Technical Analysis: Dollar has key supports at 99.40 and 99.20
The Dollar Index trades at 99.84, extending a corrective decline from a double top above 101.65, with the daily chart showing weak momentum. The Relative Strength Index (14) is hovering around 36, and the Moving Average Convergence Divergence (MACD) indicator is holding below zero, endorsing the bearish view.
Bears are targeting the two-month lows of 99.38 (June 15 lows) and the key 200-day Simple Moving Average (SMA), which would cross the price around 99.20. A clear break below these levels would boost sellers' confidence and bring the late May low, at 98.75, and the April and May bottom, near 97.60, into focus.
On the topside, have been capped below the 100.00 area so far this week. Further up, a support-turned-resistance at the 100.40 area (July 15 low, July 31 high) is likely to challenge bulls ahead of the July 30 high, at 101.07.
(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 New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.02% | 0.00% | 0.11% | 0.02% | 0.41% | -0.08% | |
| EUR | 0.02% | 0.00% | 0.02% | 0.13% | 0.02% | 0.44% | -0.05% | |
| GBP | 0.02% | 0.00% | 0.02% | 0.12% | 0.02% | 0.44% | -0.06% | |
| JPY | 0.00% | -0.02% | -0.02% | 0.11% | 0.01% | 0.41% | -0.08% | |
| CAD | -0.11% | -0.13% | -0.12% | -0.11% | -0.10% | 0.33% | -0.17% | |
| AUD | -0.02% | -0.02% | -0.02% | -0.01% | 0.10% | 0.42% | -0.08% | |
| NZD | -0.41% | -0.44% | -0.44% | -0.41% | -0.33% | -0.42% | -0.48% | |
| CHF | 0.08% | 0.05% | 0.06% | 0.08% | 0.17% | 0.08% | 0.48% |
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
FXStreet
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.
