|

US Dollar Index Price Forecast: Trades around 99.00 after pulling back from nine-day EMA

  • The US Dollar may target support at 97.91, the lowest level since March 2022.
  • The bearish bias prevails as the RSI remains below the 50 level.
  • The nine-day EMA at 99.16 acts as the immediate barrier.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is retracing its recent gains from the previous session and trading around 99.00 during the Asian hours on Monday.

The bearish bias seems persistent, suggested by the technical analysis of the daily chart, which shows the index remaining within a descending channel pattern. The short-term price momentum is weaker as the DXY stays below the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is positioned below the 50 level, indicating a bearish outlook.

On the downside, the DXY could approach 97.91, the lowest level since March 2022, which was recorded on April 21, followed by the lower boundary of the descending channel around 97.30.

The US Dollar Index finds an immediate barrier at the nine-day EMA of 99.16. A break above this level could improve the short-term price momentum and support the DXY to approach the descending channel’s upper boundary around 99.90

Further appreciation could cause the emergence of a bullish bias, leading the index to test the 50-day EMA at the 100.59 level. A break above this level could strengthen the medium-term price momentum and prompt the DXY to explore the region around the three-month high at 104.37, reached on April 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 weakest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.15%-0.18%-0.29%-0.07%-0.24%-0.30%-0.06%
EUR0.15%-0.05%-0.16%0.07%-0.08%-0.16%0.07%
GBP0.18%0.05%-0.02%0.12%-0.02%-0.12%0.12%
JPY0.29%0.16%0.02%0.22%-0.01%-0.07%0.10%
CAD0.07%-0.07%-0.12%-0.22%-0.20%-0.25%0.00%
AUD0.24%0.08%0.02%0.00%0.20%-0.09%0.15%
NZD0.30%0.16%0.12%0.07%0.25%0.09%0.23%
CHF0.06%-0.07%-0.12%-0.10%0.00%-0.15%-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.

More from Akhtar Faruqui
Share:

Editor's Picks

AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold continues scaling new weekly highs; eyes $4,050 as US sticks to elections-led losses

Gold builds on its strong intraday move up, hitting a series of new weekly tops, and climbing back close to the $4,050 level during the first half of the European session amid a broadly weaker US Dollar. Democrats’ wins in the House and Senate raise the prospect of gridlock in Washington. Moreover, heightened political uncertainty drove investors to safe-haven assets, exerting some downward pressure on US bond yields. This is seen weighing on the Greenback and supporting the precious metal.

Crypto Today: Bitcoin, Ethereum, XRP extend advance as US Dollar slides on Democrats' US midterm victory

Bitcoin trades above $78,000 on Wednesday as risk-on sentiment improves in the broader cryptocurrency market. Ethereum mirrors BTC’s recovery outlook, hovering above $2,300. Ripple similarly exchanges hands above $1.28, marking two consecutive days of gains.

ADP Employment Report expected to show slower job growth in October

The Automatic Data Processing Research Institute is due to release October’s private-sector employment report on Wednesday. The market consensus anticipates a moderate slowdown in job creation, with the ADP Employment Change expected to show 69K new private jobs in October, down from 90K in September.

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.