US Dollar Index Price Forecast: Outlook remains bearish near 103.50

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

The US Dollar Index gains ground to near 103.60 in Tuesday’s early European session, up 0.14% on the day.


The negative outlook of the index remains in play with a bearish RSI indicator. 


The first support level to watch is 103.35; the immediate resistance level is seen at 104.10. 


The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, recovers some lost ground to near 103.60 during the early European session on Tuesday. The potential upside for the Greenback might be limited amid fears that US President Donald Trump's tariff policies could trigger a broader economic slowdown.



The US Federal Reserve (Fed) interest rate decision will be in the spotlight on Wednesday, with no change in rate expected. According to the CME FedWatch tool, the markets have priced in nearly 60% chance of rate cuts, a little over two reductions, for the rest of the year.



According to the daily chart, the bearish sentiment of the DXY remains intact as the index holds below the key 100-day Exponential Moving Average (EMA). Furthermore, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which stands below the midline near 31.50, supporting the sellers in the near term. 



The initial support level for the USD index emerges at 103.35, the low of March 17. Further south, the next contention level is seen at 102.20, the lower limit of the Bollinger Band. The additional downside filter to watch is 100.53, the low of August 28, 2024. 



On the bright side, the first upside barrier for the DXY is located at 104.10, the high of March 14. Any follow-through buying above this level could pave the way to 106.15,  the 100-day EMA. A decisive break above the mentioned level could see a rally to 107.38, the high of February 19.  


US Dollar Index (DXY) daily chart


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
US Dollar Index drifts sideways ahead of key jobs and inflation dataThe US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, hovered near 99.30 on Wednesday as investors remained cautious ahead of the Nonfarm Payrolls and inflation data later in the week.
Author  FXStreet
2 hours ago
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, hovered near 99.30 on Wednesday as investors remained cautious ahead of the Nonfarm Payrolls and inflation data later in the week.
placeholder
AUD/USD gains as market reacts to weak US data, global uncertaintyThe AUD/USD pair saw a slight uptick as investors weighed weak United States (US) economic data, including a contraction in Q1 GDP. The market now expects potential Federal Reserve (Fed) rate cuts, which have pressured the US Dollar (USD).
Author  FXStreet
2 hours ago
The AUD/USD pair saw a slight uptick as investors weighed weak United States (US) economic data, including a contraction in Q1 GDP. The market now expects potential Federal Reserve (Fed) rate cuts, which have pressured the US Dollar (USD).
placeholder
EUR/JPY Price Analysis: Euro steadies near 162.00 as technical signals divergeThe EUR/JPY pair moved modestly lower on Wednesday, holding near the 162.00 area as it heads into the Asian session. Price action remained contained within a tight daily range, reflecting indecision among traders.
Author  FXStreet
2 hours ago
The EUR/JPY pair moved modestly lower on Wednesday, holding near the 162.00 area as it heads into the Asian session. Price action remained contained within a tight daily range, reflecting indecision among traders.
placeholder
USD/JPY edges lower as recession fears rise and Japan data underwhelmsThe USD/JPY is trading with modest losses, hovering near the mid-143.00s after disappointing US growth data and lackluster Japanese economic reports fueled diverging sentiment around both currencies.
Author  FXStreet
2 hours ago
The USD/JPY is trading with modest losses, hovering near the mid-143.00s after disappointing US growth data and lackluster Japanese economic reports fueled diverging sentiment around both currencies.
placeholder
AUD/NZD Price Analysis: Aussie pressured near mid-1.0800s as long-term trend weakensThe AUD/NZD pair is trading with a slight downside bias on Wednesday as it hovers near the mid-1.0800s, showing mild losses for the day ahead of the Asian session.
Author  FXStreet
2 hours ago
The AUD/NZD pair is trading with a slight downside bias on Wednesday as it hovers near the mid-1.0800s, showing mild losses for the day ahead of the Asian session.
Real-time Quote