The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, declined after three consecutive days of gains and was trading around 98.00 during European hours on Wednesday [1]. Technical analysis indicates that the DXY is moving sideways within a descending channel, maintaining a bearish bias as it remains below both the nine-period and 50-period Exponential Moving Averages (EMAs), which now act as resistance levels [1]. The 14-day Relative Strength Index (RSI) is at 41, suggesting weak but not extreme downside momentum [1].
The index may test the lower boundary of the descending channel near 96.70, with further declines potentially exposing the 95.56 level, which was the lowest since February 2022 and last reached on January 27 [1]. On the upside, the initial resistance is at the nine-day EMA of 98.37, followed by the 50-day EMA at 98.69 and the upper boundary of the descending channel at 98.90. A sustained break above this resistance zone could trigger a bullish move toward the 11-month high of 100.64, recorded on March 31 [1].
In terms of daily performance, the US Dollar was the weakest against the New Zealand Dollar, falling by 1.48%. It also declined by 1.25% against the Japanese Yen, 1.14% against the Australian Dollar, 0.67% against the British Pound, 0.63% against both the Euro and Swiss Franc, and 0.29% against the Canadian Dollar [1].
No forward-looking statements or analyst opinions beyond the technical analysis were provided in the article [1].
CONCLUSION
The US Dollar Index is under pressure, trading near 98.00 after a recent retreat and showing a bearish technical outlook. Key support and resistance levels will determine the next move, with the index vulnerable to further declines unless it can break above the current resistance zone. Market sentiment remains negative for the US Dollar in the short term.