US Dollar Index Price Forecast: DXY eyes 99.75 confluence hurdle amid Fed bets, Iran risks
- DXY catches fresh bids on Tuesday and reverses a part of the previous day’s retracement slide.
- Rising Fed rate hike bets and escalating US-Iran tensions underpin the safe-haven Greenback.
- A move above the 99.70-99.75 confluence hurdle will set the stage for further near-term gains.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, regains positive traction on Tuesday and climbs back above the mid-99.00s during the first half of the European session. The index has now reversed a part of the previous day's retracement slide from an over two-week high, though the near-term bias seems tilted in favor of bullish traders.
Against the backdrop of Federal Reserve (Fed) Chair Kevin Warsh's hawkish comments on Friday, inflation risks stemming from rising energy prices lift market bets for an interest rate hike in September. Moreover, a further escalation of tensions between the US and Iran turns out to be another factor underpinning the safe-haven Greenback, validating the positive outlook for the DXY.
Meanwhile, the Moving Average Convergence Divergence (MACD) has turned slightly positive and the Relative Strength Index (RSI) hovers near a neutral 50 area. Improving momentum indicators, however, only hint at stabilization rather than a clear bullish trend while the DXY remains capped by the clustered resistance just overhead, near the 99.70-99.75 region.
The said area comprises the 100-day Simple Moving Average (SMA) and the 38.2% Fibonacci retracement of the July-August fall, forming a tight barrier that the index would need to reclaim to ease immediate downside pressure. Further resistance is seen at the 50.0% retracement at 100.07 and the 61.8% level at 100.44, ahead of stronger Fibonacci caps at 100.95 and 101.61.
On the downside, first support emerges at the 23.6% Fibo. retracement at 99.26, with a deeper structural floor around the cycle low near 98.54.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
DXY daily chart
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 | 0.21% | 0.07% | 0.11% | 0.12% | 0.34% | 0.39% | 0.22% | |
| EUR | -0.21% | -0.14% | -0.07% | -0.10% | 0.12% | 0.16% | 0.00% | |
| GBP | -0.07% | 0.14% | 0.04% | 0.06% | 0.26% | 0.30% | 0.14% | |
| JPY | -0.11% | 0.07% | -0.04% | 0.00% | 0.22% | 0.28% | 0.09% | |
| CAD | -0.12% | 0.10% | -0.06% | -0.01% | 0.21% | 0.25% | 0.09% | |
| AUD | -0.34% | -0.12% | -0.26% | -0.22% | -0.21% | 0.05% | -0.12% | |
| NZD | -0.39% | -0.16% | -0.30% | -0.28% | -0.25% | -0.05% | -0.16% | |
| CHF | -0.22% | -0.00% | -0.14% | -0.09% | -0.09% | 0.12% | 0.16% |
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.
