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