US Dollar Index Price Forecast: Tests 98.00 support after breaking below nine-day EMA

• The US Dollar Index may find immediate support at the psychological level of 98.00.

• Market bias is bearish as the 14-day Relative Strength Index is positioned below the 50 mark.

• The initial barrier appears at the nine-day EMA of 98.20.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its losses for the third successive session and trading around 98.10 during the European hours on Thursday. The technical analysis of the daily chart shows the dollar index remains within the descending channel pattern, suggesting a prevailing bearish bias.

The 14-day Relative Strength Index (RSI) is positioned below the 50 level, suggesting that market sentiment is bearish. Additionally, the short-term price momentum is weakening as the DXY moved below the nine-day Exponential Moving Average (EMA).

On the downside, the immediate support lies at the psychological level of 98.00, followed by a seven-week low of 97.11, which was recorded on July 24. Further declines would put downward pressure on the US Dollar Index to test 96.38, the lowest since February 2022, which was recorded on July 1, 2025, aligned with the descending channel’s lower boundary.

The US Dollar Index is testing its immediate barrier at the nine-day EMA of 98.20, followed by the 50-day EMA at 98.42 and the upper boundary of the descending channel around the psychological level of 98.50. A successful break above this confluence resistance zone would cause the emergence of the bullish bias and support the DXY to explore the region around the three-month high at 100.26, which was recorded on August 1.

US Dollar Index: Daily Chart