US Dollar Index Price Forecast: Tests confluence around 98.00 barrier
- The US Dollar Index is hovering around the nine-day EMA of 97.89.
- Market sentiment remains bearish with the 14-day Relative Strength Index holding below the 50 level.
- The resistance zone appears at the psychological level of 98.00.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the third successive session ahead of the August US Consumer Price Index (CPI) and trading around 97.90 during the European hours on Thursday. The technical analysis of the daily chart shows the dollar index remains within the descending channel pattern, suggesting a prevailing bearish bias.
The 14-day Relative Strength Index (RSI) is also positioned slightly below the 50 level, indicating the bearish bias is active. However, the short-term price momentum is turned stronger as the DXY has moved above the nine-day Exponential Moving Average (EMA).
On the downside, the US Dollar Index is testing initial support at the nine-day EMA of 97.89, followed by the two-month low of 97.25, which was recorded on September 9. A break below this level would weaken the short-term price momentum and put downward pressure on the DXY to navigate the area around the 96.38, the lowest since February 2022, reached on July 1. Further declines would prompt the dollar index to test the descending channel’s lower boundary around 95.60.
The primary barrier lies at the psychological level of 98.00, followed by the upper boundary of the descending channel at the 50-day EMA at 98.24. A break above this crucial resistance zone would improve the medium-term price momentum and lead the DXY to explore the region around the four-month high at 100.26, which was recorded on August 1.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.14% | 0.35% | 0.13% | 0.15% | 0.15% | 0.10% | |
| EUR | -0.04% | 0.09% | 0.19% | 0.10% | 0.08% | 0.14% | 0.02% | |
| GBP | -0.14% | -0.09% | 0.12% | -0.02% | -0.10% | 0.05% | -0.07% | |
| JPY | -0.35% | -0.19% | -0.12% | -0.14% | -0.17% | -0.07% | -0.18% | |
| CAD | -0.13% | -0.10% | 0.02% | 0.14% | -0.12% | 0.04% | -0.03% | |
| AUD | -0.15% | -0.08% | 0.10% | 0.17% | 0.12% | 0.06% | -0.06% | |
| NZD | -0.15% | -0.14% | -0.05% | 0.07% | -0.04% | -0.06% | -0.14% | |
| CHF | -0.10% | -0.02% | 0.07% | 0.18% | 0.03% | 0.06% | 0.14% |
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
FXStreet
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.
