|

US Dollar Index Price Forecast: Holds gains around 107.00 despite increased bearish bias

  • The US Dollar Index may face challenges as the 14-day RSI remains below 50, signaling increased bearish bias.
  • The primary key support appears around the descending channel’s lower boundary at 106.30.
  • The DXY may target its primary resistance at the nine-day EMA of 107.34

The US Dollar Index (DXY) ticks higher on Tuesday, hovering around 107.00 during European trading hours after three consecutive sessions of losses. The daily chart indicates a prevailing bearish bias as the index remains confined within a descending channel.

The 14-day Relative Strength Index (RSI) sits below the 50 mark, signaling strengthening bearish momentum. Additionally, the DXY remains below the nine- and 14-day Exponential Moving Averages (EMAs), reinforcing weak short-term price momentum.

On the downside, the US Dollar Index may test the lower boundary of the descending channel at 106.30, followed by psychological support at 106.00. A break below this level could deepen the bearish trend, potentially pushing the index toward the three-month low of 105.41, recorded on December 6.

Conversely, immediate resistance lies at the nine-day EMA of 107.34, followed by the 14-day EMA at 107.54. A decisive break above these levels could improve short-term momentum, opening the door for a move toward the upper boundary of the descending channel at 109.50, with further upside potential toward the five-week high of 109.80, last tested on February 3.

US Dollar Index: 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.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.17%0.06%0.35%0.04%0.07%0.48%-0.04%
EUR-0.17% -0.11%0.21%-0.13%-0.11%0.31%-0.21%
GBP-0.06%0.11% 0.31%-0.02%-0.00%0.41%-0.11%
JPY-0.35%-0.21%-0.31% -0.32%-0.30%0.10%-0.41%
CAD-0.04%0.13%0.02%0.32% 0.02%0.44%-0.09%
AUD-0.07%0.11%0.00%0.30%-0.02% 0.42%-0.14%
NZD-0.48%-0.31%-0.41%-0.10%-0.44%-0.42% -0.52%
CHF0.04%0.21%0.11%0.41%0.09%0.14%0.52% 

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

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

More from Akhtar Faruqui
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD eyes 1.1800 barrier near two-month highs

EUR/USD extends its gains for the second consecutive day on Tuesday and approaches 1.1800. On the daily chart, technical analysis indicates a persistent bullish bias, as the pair moves upward within the ascending channel pattern. Additionally, the 14-day Relative Strength Index at 68.89 reaffirms the bullish bias.

GBP/USD climbs to 1.3500 area, renews ten-week high

GBP/USD extends its weekly rally and trades at its highest level since early October near 1.3500. The US Dollar remains under persistent bearish pressure heading into the holidays, while Pound traders largely brush off the latest interest rate cut from the Bank of England.

Gold approaches $4,500 as record-setting rally continues

Gold builds on Monday's impressive gains and advances toward $4,500, setting fresh record-highs along the way. Heightened geopolitical tensions, combined with the broad-based US Dollar (USD) weakness ahead of the Q3 GDP data, help XAU/USD preserve its bullish momentum.

Uniswap holds above $6 as traders eye UNIfication vote outcome

Uniswap price holds above $6 at the time of writing on Tuesday after closing above a key resistance zone in the previous week. Traders are focusing on the highly anticipated UNIfication proposal, which is set to conclude on Thursday, and could become a key near-term catalyst. On the technical side, momentum indicators are flashing bullish signals, hinting at an upside rally.

Ten questions that matter going into 2026

2026 may be less about a neat “base case” and more about a regime shift—the market can reprice what matters most (growth, inflation, fiscal, geopolitics, concentration). The biggest trap is false comfort: the same trades can look defensive… right up until they become crowded.

XRP steadies above $1.90 support as fund inflows and retail demand rise

Ripple (XRP) is stable above support at $1.90 at the time of writing on Monday, after several attempts to break above the $2.00 hurdle failed to materialize last week. Meanwhile, institutional interest in the cross-border remittance token has remained steady.