US Dollar Index Holds Below 99.00 as Bearish Momentum Builds

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US Dollar Index Struggles Below 99.00 as Technical Weakness Persists

The US Dollar Index (DXY) is trading near 98.90 during Thursday's Asian session, following continued weakness from the previous day. The index, which tracks the value of the USD against a basket of major currencies, is under sustained pressure as bearish momentum dominates.

Technical Outlook: Downtrend Channel and Weak RSI Confirm Bearish Bias

DXY remains firmly below the nine-day Exponential Moving Average (EMA), signaling a lack of short-term bullish momentum. Additionally, the 14-day Relative Strength Index (RSI) sits below the 50 mark, reinforcing the current bearish sentiment.

📉 For a deeper dive into RSI and EMA trends, check out our Technical Analysis Guide

The index continues to move within a clearly defined downtrend channel, with support levels pointing toward:

• 97.91 – the lowest level since March 2022, touched again on April 21
• 97.70 – the lower boundary of the channel, marking the next potential technical support

DXY Eyes Key Resistance at EMA

On the upside, the immediate resistance level is seen at the nine-day EMA, around 99.21. A break above this level would be required to shift short-term sentiment and challenge the current bearish trend. Until then, downside risks remain in focus.

Conclusion: DXY Under Pressure, Support Levels in Sight

With multiple bearish signals in play—including a weak RSI and price action below moving averages—the US Dollar Index is poised for further losses unless significant macroeconomic support or policy shifts alter the trend.

🔗 See related forecast: How Fed Rate Expectations Impact the US Dollar Index