US Dollar Index: Consolidation near resistance – OCBC

OCBC’s Christopher Wong notes the Dollar Index is consolidating as it tracks UST yields, with softer Oil and slightly lower yields capping USD upside. The bank highlights key resistance around 99.40 and 100.50/60 and support near 98.30/50 and 97.50/60. Near-term focus is on US data and Fed policy signals rather than a clear directional break.

Dollar Index capped by yields, Oil

"The USD remains largely in consolidation mode, still tracking UST yields. Overnight US data was mixed: initial jobless claims eased, while the flash PMI showed firmer manufacturing activity but softer services momentum. The bigger driver for USD remains the yield and oil factors."

"Softer oil and modestly lower UST yields have capped USD upside, while markets stay cautious on how far to price US-Iran deal hopes."

"DXY was last at 99.20 levels. Daily momentum is bullish while RSI was near overbought conditions. Price action past few sessions saw some consolidation, with 99.40 (23.6% fibo) provide key resistance in the interim, before 100.50/60 levels (2026 high)."

"Support at 98.30/50 levels (21, 100, 200 DMAs), 98.10 (50% fibo retracement of 2026 low to high) and 97.50/60 levels (double bottom, 61.8% fibo retracement of 2026 low to high)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)