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US Dollar Index Price Forecast: Trades near 98.00 after retreating from nine-day EMA

  • US Dollar Index may fall toward the descending channel’s lower boundary around 96.70.
  • The 14-day Relative Strength Index near 41 signals weak but not extreme downside momentum.
  • The primary barrier lies at the nine-day EMA of 98.37.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is declining after three days of gains and trading around 98.00 during the European hours on Wednesday. The technical analysis of the daily chart shows that the dollar index is moving sideways within the descending channel, suggesting an ongoing bearish bias.

The near-term bias is bearish as the US Dollar Index holds below both the nine-period and 50-period Exponential Moving Averages (EMAs), which now act as a cap. This configuration suggests rebounds are likely to face selling pressure while the 14-day Relative Strength Index (RSI) around 41 hints at weak, but not extreme, downside momentum.

The DXY may navigate the region around the lower boundary of the descending channel around 96.70. Further declines would expose the 95.56, the lowest since February 2022, which was reached on January 27.

On the upside, the initial barrier lies at the nine-day EMA of 98.37, followed by the 50-day EMA at 98.69 and upper descending channel boundary around 98.90. A sustained break above this confluence resistance zone would cause the bullish emergence and support the dollar index to approach the 11-month high of 100.64, which was recorded on March 31.

Chart Analysis Dollar Index Spot
US Dollar Index: Daily Chart

(The technical analysis of this story was written with the help of an AI tool.)

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-0.63%-0.67%-1.25%-0.29%-1.14%-1.48%-0.63%
EUR0.63%-0.04%-0.59%0.36%-0.50%-0.88%0.01%
GBP0.67%0.04%-0.55%0.41%-0.45%-0.83%0.08%
JPY1.25%0.59%0.55%0.98%0.11%-0.25%0.68%
CAD0.29%-0.36%-0.41%-0.98%-0.85%-1.21%-0.32%
AUD1.14%0.50%0.45%-0.11%0.85%-0.35%0.54%
NZD1.48%0.88%0.83%0.25%1.21%0.35%0.89%
CHF0.63%-0.01%-0.08%-0.68%0.32%-0.54%-0.89%

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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