|

US Dollar Index Price Forecast: Could target ascending channel’s upper boundary near 99.00

  • US Dollar Index may target the initial barrier at the ascending channel's upper boundary around 98.80.
  • The 14-day Relative Strength Index remains above the 50 level, reinforcing the bullish bias.
  • The primary support lies at the 50-day EMA of 98.00.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding losses after two days of gains and trading around 98.40 during the Asian hours on Friday. The technical analysis of the daily chart shows the dollar index moving upwards within the ascending channel pattern, suggesting that bullish bias prevails.

The short- and medium-term price momentums are strengthening as the DXY remains above the nine- and 50-day Exponential Moving Averages (EMAs). Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 level, strengthening the bullish bias.

On the upside, the US Dollar Index may find its initial barrier at the upper boundary of the ascending channel around 98.80, followed by the eight-week high of 99.07, recorded on August 5. A break above this crucial resistance zone would strengthen the bullish bias and support the dollar index to approach the four-month high of 100.26, which was reached on August 1.

The US Dollar Index may find its primary support at the 50-day EMA of 98.00, followed by the nine-day EMA at 97.81 and the ascending channel’s lower boundary around 97.50. A break below this crucial support zone would weaken the bullish bias and put downward pressure on the DXY to navigate the region around the 96.22, the lowest since February 2022, reached on September 17.

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 weakest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.11%-0.05%-0.13%0.07%-0.12%-0.01%-0.08%
EUR0.11%0.10%0.05%0.23%0.05%0.16%0.05%
GBP0.05%-0.10%0.04%0.13%0.04%0.06%-0.08%
JPY0.13%-0.05%-0.04%0.15%-0.04%0.08%-0.11%
CAD-0.07%-0.23%-0.13%-0.15%-0.19%-0.05%-0.21%
AUD0.12%-0.05%-0.04%0.04%0.19%0.11%-0.03%
NZD0.01%-0.16%-0.06%-0.08%0.05%-0.11%-0.03%
CHF0.08%-0.05%0.08%0.11%0.21%0.03%0.03%

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:

Editor's Picks

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.


Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
BoJ recap: A pause for now... but Japan has entered a new inflation phase
The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.
The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.