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US Dollar Index Price Forecast: Remains steady near 97.50, nine-day EMA barrier

  • The US Dollar Index could find initial support at the three-year low of $96.38.
  • Short-term price momentum is weaker as DXY holds below the nine-day EMA.
  • The immediate resistance appears at nine-day EMA of 97.83.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after three days of losses and trading around 97.40 during the early European hours on Wednesday.

The technical analysis of the daily chart shows the dollar index moving downwards within a descending channel pattern, suggesting a persistent bearish bias. Additionally, the 14-day Relative Strength Index (RSI) is remaining below the 50 level, strengthening bearish bias. The short-term price momentum is weaker as the DXY is positioned below the nine-day Exponential Moving Average (EMA).

On the downside, the DXY could target the three-year low at $96.38, recorded on July 1. A break below this level could reinforce the bearish bias and put downward pressure on the dollar index to approach the lower boundary of the descending channel around 95.00.

The US Dollar Index may test the primary barrier at nine-day EMA of 97.83, followed by the descending channel’s upper boundary around $98.30. A successful break above this crucial resistance zone would improve the short-term price momentum and support the DXY to test the 50-day EMA at 98.63. Further advances would strengthen the medium-term price momentum and prompt the dollar index to target the two-month high at $99.42, which was reached on June 23.

(The story was corrected on Wednesday at 08:10 GMT, to say in the last paragraph that "further advances would strengthen the medium-term price momentum; instead of declines would weaken the momentum.")

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 Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.10%-0.09%0.06%-0.11%-0.39%-0.70%-0.10%
EUR-0.10%-0.19%-0.03%-0.20%-0.51%-0.79%-0.20%
GBP0.09%0.19%0.18%-0.01%-0.33%-0.60%0.04%
JPY-0.06%0.03%-0.18%-0.17%-0.42%-0.65%-0.15%
CAD0.11%0.20%0.01%0.17%-0.26%-0.37%0.04%
AUD0.39%0.51%0.33%0.42%0.26%-0.27%0.35%
NZD0.70%0.79%0.60%0.65%0.37%0.27%0.65%
CHF0.10%0.20%-0.04%0.15%-0.04%-0.35%-0.65%

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.

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