DOLLAR INDEX
US Dollar Index is trading below the resistance zone of 98.25, and this area is likely to limit the pace of the upward movement in today’s trading.
|
Support |
96 | 95 | – |
| Resistance | 98.25 | 101.25 |
103.50 |
The U.S. Dollar Index (DXY) saw a slight uptick today, rising by approximately 0.2% to approach the 98.00 level, supported by growing market anticipation surrounding U.S. trade policy and increased demand for safe-haven assets. This move came after a technical breakout above a key resistance zone, signaling a short-term shift in the bearish momentum that has dominated the index since the beginning of the year. Additionally, rising U.S. Treasury yields helped bolster the dollar against a basket of G10 currencies.
Despite this rebound, the broader outlook for the dollar remains bearish, particularly given its sharp year-to-date decline of nearly 11% in 2025 its worst annual performance since the 1970s. Key levels at 98.50 and 95.00 remain critical in the days ahead, as markets await fresh U.S. economic data and potential Federal Reserve actions. Any de-escalation in trade rhetoric or signs of monetary easing could put renewed downward pressure on the index, making the current rally a cautious one.
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