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US Dollar Index Price Forecast: Tests 100.50 support, with nine-day EMA providing backing

  • The US Dollar Index could retest the 50-day EMA near the 101.78 level.
  • Technical analysis indicates a continued bullish bias, as the index remains within an ascending channel.
  • The DXY is testing its initial support at the nine-day EMA of 100.47.

The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, is losing ground for the second successive session, trading near 100.50 during the European hours on Wednesday.

On the daily chart, technical analysis suggested a sustained bullish bias, with the index trading within an ascending channel. Additionally, the DXY is still positioned above the nine-day Exponential Moving Average (EMA), indicating that short-term momentum is stronger. However, the 14-day Relative Strength Index (RSI) moves below the 50 level, indicating weakening of a bullish bias.

To the upside, the US Dollar Index may target again the 50-day EMA at the 101.77 level, followed by the upper boundary of the ascending channel around 102.10. A break above this crucial resistance zone would reinforce bullish bias and support the index to explore the area around the two-month high at 104.37, reached on April 1.

On the downside, immediate support is seen at the nine-day EMA of 100.47. A break below this level could weaken the short-term price momentum and lead the DXY to test the lower boundary of the ascending channel around 99.80. A break below the channel would dampen the bullish bias and put pressure on the index to navigate the region around 97.91 — the lowest level since March 2022, which was recorded on April 21.

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-0.57%-0.33%-0.95%-0.18%-0.34%-0.38%-0.60%
EUR0.57%0.26%-0.38%0.40%0.25%0.18%-0.03%
GBP0.33%-0.26%-0.64%0.14%-0.01%-0.08%-0.28%
JPY0.95%0.38%0.64%0.77%0.62%0.55%0.34%
CAD0.18%-0.40%-0.14%-0.77%-0.16%-0.20%-0.44%
AUD0.34%-0.25%0.00%-0.62%0.16%-0.05%-0.27%
NZD0.38%-0.18%0.08%-0.55%0.20%0.05%-0.23%
CHF0.60%0.03%0.28%-0.34%0.44%0.27%0.23%

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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